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Q&A: Should our program institute a restrictive covenant in our hospitalists' contracts?

Hospitalist Leadership Connection, March 2, 2010

A: Due to the ease with which hospitalists can change jobs, an employer should make certain it does not recruit physicians to the area who wind up working for the competition. Many contracts include a noncompete clause that prohibits a physician from working for a competitor for a certain period of time and/or in a certain location.

Or course, restrictions must be reasonable in terms of both time and geography. Usually the time restriction cannot exceed two years, or in some locations, only one year. The geography limitation will vary based on region. For example, if the practice is located in a major metropolitan area with several competitors within a few miles, then a 10-mile radius might be a reasonable geographic restriction. If the practice is in a suburban or rural setting, the hospital may want to impose a 25-mile radius restriction.

One benefit of including a restrictive covenant in hospitalists? contracts is that the employer will not "lose" its secrets or physicians to the competition. The downside is that some candidates may resist signing a noncompete contract.

The above excerpt is adapted from Practical Guide to Hospitalist Recruitment and Retention by Kirk Mathews, MBA, and John Nelson, MD, FACP, FHM, published by HCPro, Inc.

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