Medical Professionals Challenge Rising Use of Noncompete Agreements Amid Patient Care Concerns

David Lankford, a pediatrician from Indiana with a focus on critically ill children, made the difficult decision to depart from his position at Lutheran Hospital in Fort Wayne. This choice arose following a layoff of pediatricians at the hospital, resulting in a significant surge in the number of patients under his care.

Transitioning to Parkview Health, located nearby, Lankford found himself entangled in a legal dispute initiated by his former employer. Allegations of violating a noncompete clause in his contract were raised, leading to an ongoing legal battle over his ability to continue serving patients in Fort Wayne.

Expressing concern for the implications on patient care, Lankford stated, “There is a shortage of physicians who do the subspecialty work that I do in Fort Wayne.” He emphasized the potential hardship faced by critically ill children and their families due to restricted access to care.

This scenario exemplifies a growing trend where doctors are confronting the prevalence of noncompete agreements, which impose limitations on their ability to practice within a specified geographic area if they leave their job. While employers argue these agreements safeguard their investments in recruitment and support for physicians, medical professionals assert that such provisions can impede patient access to care and deter them from addressing concerns about safety or ethical issues.

According to Omar Atiq, president of the American College of Physicians, the proliferation of noncompete agreements contradicts the core values of medicine. He highlighted the significance of the doctor-patient relationship and warned against the adverse effects of severing such connections.

Once regarded as restrictions primarily for high-ranking executives or individuals with access to proprietary information, noncompete agreements have become ubiquitous across various industries, including healthcare. This trend has resulted in over 30 million workers facing limitations on their employment opportunities, as reported by the Federal Trade Commission.

President Joe Biden’s commitment to banning noncompetes across the economy reflects a growing recognition of the issue’s significance. The FTC is expected to finalize a decision regarding a proposed ban early this year, according to a Biden administration official.

Within the medical field, noncompete agreements have become standard practice, affecting a significant portion of physicians, particularly those employed by hospitals or large health systems. This shift has occurred as healthcare organizations increasingly acquire medical practices, leading to a rise in noncompete agreements’ prevalence.

Critics argue that these agreements exacerbate physician shortages, disrupt doctor-patient relationships, and deter doctors from advocating for patient safety. Concerns have been raised regarding patients’ experiences, with abrupt interruptions in care and limited information on their physicians’ whereabouts.

Despite opposition from organizations like the American Hospital Association, which emphasizes the need to protect investments made in recruiting and retaining physicians, there’s growing support for reevaluating the widespread use of noncompete agreements.

In various instances across different states, doctors have found themselves entangled in legal battles due to noncompete agreements. An OB-GYN in Savannah, Georgia, faced threats of litigation after seeking employment at a clinic focusing on low-income women. Similarly, two cardiologists in North Carolina were confronted with legal action when transitioning to a different hospital.

In Indiana, David Lankford’s case underscores the contentious nature of noncompete agreements. His departure from Lutheran Hospital led to allegations of contract breaches and a subsequent legal dispute. Despite winning a preliminary injunction, Lankford’s battle continues, reflecting the complexities and challenges involved in challenging noncompete agreements.

In Ohio, surgeon Anjay Khandelwal navigated a lengthy legal process before securing the right to practice at Akron Children’s Hospital’s burn center. His case illustrates the obstacles physicians face in challenging noncompete agreements and the potential implications for patient care.

While some physicians have achieved victories in court, many choose to avoid legal confrontation due to the associated financial and reputational risks. This often leads to physicians quietly relocating to new cities, disrupting their personal and professional lives while avoiding potential lawsuits.

Overall, the prevalence of noncompete agreements in the medical field poses significant challenges, impacting both physicians and patients. As debates over their legality and implications continue, the broader healthcare landscape remains marked by uncertainty and contentious legal battles.