Under the Fair Contracting for Health Care Practitioners Act, a noncompete becomes invalid if a physician, certified registered nurse anesthetist, certified registered nurse practitioner or physician assistant is dismissed. It also puts a time limit on noncompetes and requires employers to notify patients of a provider’s departure within 90 days. The law, which was signed last summer by Gov. Josh Shapiro, took effect Jan. 1.
Critics of the law point out that it leaves many healthcare workers without protection and does not limit the geographic scope of noncompetes. Pennsylvania systems also have said that the new regulations might increase costs for patients and make it harder for rural patients to get medical care, according to the report.
Jolene Calla, vice president of finance and legal affairs for the Hospital and Healthsystem Association of Pennsylvania, echoed fears the law could cause bidding wars in which physicians hop between practices in pursuit of larger salaries and told Spotlight that noncompetes incentivize practitioners to remain at their current roles.
“Sometimes hospitals build entire units and practices around one provider. If they leave, many times so does that service,” Ms. Calla said.
The law mandates that the Pennsylvania Health Care Cost Containment Council, an independent state body, studies the effect of the legislation within the next three years, after which the legislators are set to review the outcomes and the role of noncompetes.
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