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Understanding employment contracts: What docs need to know about restrictive clauses

Medical Staff Briefing, October 1, 2009

This is an excerpt from a member only article. To read the article in its entirety, please login or subscribe to Medical Staff Briefing.

Q: What’s the difference between non-compete, restrictive covenant, and non-solicitation clauses?
A: Non-compete clauses protect an organization’s interests by prohibiting physicians from doing business with one of the organization’s direct competitors. These restrictions are enforceable for as long as the contract specifies—sometimes even for a period after the contract has been terminated.
Restrictive covenants prevent physicians who leave an organization from doing business within a defined geographic area, says Sheff. This area can be a radius around the organization’s primary service site, specified counties, or specified zip codes. The purpose and terms of non-compete clauses and restrictive covenants often overlap, adds Mainwaring.
Non-solicitation clauses prevent a physician from leaving the organization to work for a competitor and subsequently soliciting patients and staff members to follow him or her to the new practice, explains Mainwaring.

This is an excerpt from a member only article. To read the article in its entirety, please login or subscribe to Medical Staff Briefing.

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