Thomson Reuters Practical Law has released the 2025 Practice Note titled “Health Care Non-Competes,” authored by David J. Clark.
The Note discusses non-compete agreements in the health care sector, examining the legal and policy considerations impacting their enforceability. It highlights the unique challenges posed by health care non-competes, including patient access and continuity of care, and reviews state-specific statutes that restrict or prohibit these agreements for various health care workers. This Note discusses alternative restrictive covenants, such as non-solicitation and non-treatment agreements, and provides insights into the jurisdictional variations in non-compete enforceability. It also addresses ethical concerns raised by health care non-competes, particularly those affecting physicians, and examines the implications of telemedicine and health care deserts on non-compete enforcement. This Note offers guidance on best practices for drafting and enforcing non-competes. It is jurisdiction-neutral but will be useful to employers and their counsel in all jurisdictions.
Following is an excerpt (see below to download the full version in PDF format):
The enforceability of non-compete agreements has long been the subject of civil litigation and arbitration between contracting parties. Non-competes are agreements that limit a worker’s ability to engage in certain post-employment activities. Traditional non-competes restrict workers from engaging in competitive activity for a designated time period, typically within a specified geographic area.
In recent years, federal and state legislatures and regulatory agencies have more broadly targeted noncompetes and other restrictive covenants for reform or even elimination. Non-competes create an inherent tension between an employer’s need to protect legitimate business interests, such as trade secrets, confidential information, and client relationships, and employees’ rights to earn a living and work in their chosen profession and location.
Non-competes with health care professionals present unique challenges and considerations. The enforceability of these agreements may be influenced by patients’ rights to access, choose, and continue to receive treatment from specific health care professionals, and also by the lack of available care in certain areas. In recognition of these public policy concerns, many states have enacted laws restricting or prohibiting non-competes with certain health care professionals.
Download the full Practice Note in PDF format: Health Care Non-Competes—2025