Strategies for Narrowing a Non-Compete Before You Sign
One of the most important parts of a physician employment contract is the non-compete agreement. This clause restricts where you can practice medicine if you leave your current job. While some restrictions are common, overly broad non-competes can severely limit your career options. The good news is that with careful physician contract negotiation, it is often possible to narrow these terms before you sign.
The first strategy is to reduce the geographic scope. Many contracts list a wide radius around every location of the hospital or practice, which can make it nearly impossible to work in your community if you leave. A reasonable non-compete should be limited to the specific facility where you primarily work. During a physician contract review, ask whether the restriction can be tied only to your main practice site.
Second, look closely at the time period of the restriction. Non-competes often last one to two years, but longer durations can be challenged as unreasonable. Negotiating the restriction down to six months or one year may give you more flexibility without harming your employer’s interests.
Third, clarify the scope of practice covered. Some agreements prohibit you from practicing medicine in any form within the restricted area. A better approach is to limit the restriction only to the specialty you practice with that employer. This prevents you from being unfairly blocked from opportunities outside your field.
Another useful strategy is to negotiate carve-outs. For example, you might request an exception if the employer terminates you without cause or if you leave due to a breach by the employer. You could also ask for the restriction not to apply to moonlighting or telemedicine arrangements.
Finally, always consider having a physician contract lawyer review the agreement. Non-competes are enforceable in some states but limited or banned in others, and an experienced attorney can help you understand what is reasonable.
By taking the time to negotiate the geographic scope, time period, and practice limitations, you can make a non-compete more manageable. Careful physician contract review before you sign is the best way to protect your career and keep your options open.
Contact our physician contract review lawyer to set up a review of your contract.
