Physician NonCompete Agreements Require Particular Provisions

Originally published by Thomas J. Crane.

A non-compete clause for physicians requires adherence to certain criteria to be effective in Texas. Texas has a state law applicable to physician noncompete agreements.

•  A physician noncompete must not impinge on a doctor’s access to a list of his/her patients upon his/her departure
• The departing doctor must have access to the patients’ records when authorized by the patient
• The physician must not be prevented from providing treatment to an acutely ill patient
• The agreement must provide for a “reasonable” amount for a buy-out clause, or allow an arbitrator to make a decision on a reasonable amount

See Texas Business & Commerce Code Sec. 15.50 for additional information.

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