Indiana increases restrictions on physician noncompete agreements

Indiana’s Senate Enrolled Act 7, which aims to further restrict physician noncompete agreements in the state, went into effect July 1, according to a July 3 report from JD Supra.

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The act was signed into law May 4 and builds upon initial moves made within the House Enrolled Act 1004, which went into effect in July 2020 and looked to retain physician talent and control rising healthcare costs.

SEA 7 prohibits employers and primary care physicians from entering into noncompete agreements, makes previous physician noncompete agreements unenforceable depending on the grounds resulting in the physician’s departure and establishes a process for negotiating a noncompete buyout.

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