Signed by Governor Eric Holcomb

Vote Smart's Synopsis:

Vote to concur with house amendments and pass a bill that prohibits the usage of non-complete agreements among medical physicians.

Highlights:

• Defines ‘primary care physician’ to mean a physician practicing 1 or more of the following (Sec. 1):

• Family medicine;

• General pediatric medicine;

• Internal medicine.

• Prohibits a physician noncompete agreement from being enforceable, beginning July 1, 2023, if any of the following circumstances occur (Sec. 2):

• The employer terminates the physician’s employment without cause;

• The physician terminates the physician’s employment for cause;

• The physician’s employment contract has expired and the physician and employer have fulfilled the obligations of the contract.

• Prohibits a primary care physician and an employer from entering into a noncompete agreement, notwithstanding any other law (Sec. 3).

• Requires that, if a physician decides to purchase a release from a noncompete agreement, the employer negotiates in good faith with the physician to determine a reasonable purchase price (Sec. 4).

• Authorizes the physician or employer to serve a notice of intent to pursue mediation if (Sec. 4):

• The physician notifies the employer of their election to exercise the option to purchase a release from the noncompete agreement and;

• The physician and employer cannot agree on a reasonable purchase price.

• Requires that a party serve notice of intent to pursue mediation on the other party no later than 35 days after the physician notifies the employer (Sec. 4).

• Requires that the parties mutually select a mediator to conduct mediation (Sec. 4).

• Requires that, unless the parties agree otherwise, mediation takes place in the city of Indiana that (Sec. 4):

• Is closest to the physician's primary place of employment during their contract with the employer and;

• Has a population of more than 50,000.

• Requires that the mediation ends no later than 45 days after the date the notice of intent to pursue mediation was served (Sec. 4).

• Requires that, unless the parties agree otherwise, the cost of the mediator and other direct costs from mediation be equally divided between the parties engaged and that all other costs be paid by the party incurring them (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that prohibits the usage of non-complete agreements among medical physicians.

Highlights:

• Defines ‘primary care physician’ to mean a physician practicing 1 or more of the following (Sec. 1):

• Family medicine;

• General pediatric medicine;

• Internal medicine.

• Prohibits a physician noncompete agreement from being enforceable, beginning July 1, 2023, if any of the following circumstances occur (Sec. 2):

• The employer terminates the physician’s employment without cause;

• The physician terminates the physician’s employment for cause;

• The physician’s employment contract has expired and the physician and employer have fulfilled the obligations of the contract.

• Prohibits a primary care physician and an employer from entering into a noncompete agreement, notwithstanding any other law (Sec. 3).

• Requires that, if a physician decides to purchase a release from a noncompete agreement, the employer negotiates in good faith with the physician to determine a reasonable purchase price (Sec. 4).

• Authorizes the physician or employer to serve a notice of intent to pursue mediation if (Sec. 4):

• The physician notifies the employer of their election to exercise the option to purchase a release from the noncompete agreement and;

• The physician and employer cannot agree on a reasonable purchase price.

• Requires that a party serve notice of intent to pursue mediation on the other party no later than 35 days after the physician notifies the employer (Sec. 4).

• Requires that the parties mutually select a mediator to conduct mediation (Sec. 4).

• Requires that, unless the parties agree otherwise, mediation takes place in the city of Indiana that (Sec. 4):

• Is closest to the physician's primary place of employment during their contract with the employer and;

• Has a population of more than 50,000.

• Requires that the mediation ends no later than 45 days after the date the notice of intent to pursue mediation was served (Sec. 4).

• Requires that, unless the parties agree otherwise, the cost of the mediator and other direct costs from mediation be equally divided between the parties engaged and that all other costs be paid by the party incurring them (Sec. 4).

Full Bill Text