SB 1012 Prohibits the use of non-competition clauses in certain physician contracts
LR Number:2697S.01I Fiscal Note:2697-01
Committee:Labor and Industrial Relations
Last Action:03/14/00 - Hearing Conducted S Labor & Industrial Relations Journal page:
Effective Date:August 28, 2000
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Current Bill Summary

SB 1012 - This act prohibits the utilization of non-compete clauses in certain situations and clarifies the extent to which they may be used in other situations. A new Section 334.108 makes covenants not to compete enforceable except when they are part of a physician's contract with a not-for-profit health services corporation as defined in Section 354.010. Covenants with other health care facilities are enforceable as long as they:

1. Do not deny the physician access to a list of patients the physician saw within a year of contract termination;

2. Provide access to patient medical records with the patient's consent and in an accessible format;

3. Provide for a buy-out of the covenant by the physician at a reasonable price; and

4. Provide that the physician will not be prohibited from providing continuing treatment to specific acutely ill patients after the contract has terminated.