Last Updated: Apr 11, 2024
The PA House Health Committee approved House Bill 1633, legislation that would prohibit the use of noncompete provisions in physician employment contracts. The bill now awaits consideration by the full House of Representatives. PAMED applauds Representative Dan Frankel for introducing this bill that would help address physician shortage concerns and ensure continuity of care for patients across the Commonwealth.
House Bill 1633 addresses the concerns of thousands of Pennsylvania physicians, and other health professionals, who have historically found themselves having to accept “take it or leave it” contracts from hospitals and health systems.
"Physicians who wish to leave
one hospital system for another, or decide to leave hospital employment to
establish a private practice in the community, comes about for a variety of
reasons,” according to PAMED President Kristen Sandel, MD.
“Physicians leave practice settings for many reasons including loss of autonomy, increased administrative burdens, lack of appropriate resources, and/or unrealistic patient care expectations placed upon them, such as patient volume and time restrictions for patient visits. For others, seeking to leave a
particular hospital can be as simple as an opportunity for professional
development,” Sandel added.
While PAMED strongly supports the end of noncompete contracts by large hospitals and massive health systems, serious concerns remain for small independent physicians trying to remain viable in an environment where their staff are routinely “poached” by hospitals.
“PAMED will be seeking an amendment to House Bill 1633 that will allow these small practices to survive in the shadows of large health systems,” said PAMED’s Executive Vice President and CEO, Martin Raniowski. “Most important is our concern for patients, many of whom are forced to abandon a long-term relationship with their physician when employment disputes occur. “
Raniowski added, “Honestly, I can’t imagine why a hospital would want to force any employee to stay if they’re not happy.”
In addition to the noncompete provisions, House Bill 1633 will require employers to notify patients where their physician will be providing care in the future and explain how they can maintain their continuity of care. The bill would allow employers to offer patients the alternative of staying at their facility to receive care.
Although the use of noncompete provisions in physician contracts isn’t new, the repercussions can be considerable, given the geographic reach of some health systems that encompass hundreds of miles. In many cases, physicians and other care providers are forced to either stop practicing or move out of state. Neither alternative seems reasonable when healthcare providers are in short supply.
PAMED would also like to see House Bill 1633 amended to effectively address the interest of small independent physician practices to protect against entities seeking to "poach" established community physicians from local medical practices. TAKE ACTION NOW!