Noncompete agreements continue to fuel legal battles across healthcare, with recent cases involving cardiologists, CRNAs and competing physician groups.
The disputes highlight how restrictive covenants can shape where clinicians are able to practice, how health systems retain specialty groups and what happens when long-standing contractual relationships unravel.
Here are three recent noncompete lawsuits and rulings involving healthcare providers:
1. Schenectady, N.Y.-based Ellis Hospital has sued Albany, N.Y.-based St. Peter’s Health Partners Medical Associates, alleging the physician group is using noncompete agreements to prevent 27 cardiologists from joining Ellis.
The physicians are part of the practice formerly known as Cardiology Associates of Schenectady (N.Y). St. Peter’s Health Partners Medical Associates notified Ellis on June 15 that it was terminating the cardiology agreement effective Dec. 14. Ellis points to a provision stating that after termination or expiration, the hospital is free to contract for cardiology services with the medical group, its cardiologists or other qualified physicians. Ellis alleges the agreement also required the medical group to ensure its employment contracts with the cardiologists were consistent with that provision.
Paul Milton, president and CEO of Ellis Medicine, said in a Sept. 9 local news report that the dispute traces back to the professional services agreement that governed the arrangement between the two health systems.
“Under an agreement between the two health systems, it said that if the contract was terminated, Ellis would be allowed to contact the physicians,” Mr. Milton said. “Unbeknownst to us, St. Peter’s put noncompete language in their employment agreements.”
2. Columbia-based Missouri Heart Center shut down May 6 as Boone Health moved forward with a new cardiology clinic. The transition followed a legal dispute between the organizations. Boone Health sued Missouri Heart Center, also known as Missouri Cardiovascular Specialists, alleging breach of contract, misuse of confidential information and plans to open a competing cardiology practice in violation of a noncompete agreement.
3. In April, A Texas appeals court upheld a noncompete injunction against four CRNAs, barring them from practicing within a 20-mile radius of their former workplaces for three years. The Court of Appeals for the 9th District of Texas at Beaumont affirmed a lower court’s ruling involving Beaumont, Texas-based Anesthesia Associates and four CRNAs who joined a competing firm after their group’s contract with Christus Health Southeast Texas ended Aug. 1, 2025.
Each clinician had signed agreements that included a three-year, 20-mile, non-compete clause and a $30,000 liquidated damages provision. The court found the contracts allowed employers to seek both damages and injunctive relief, rejecting arguments that the payment functioned as a buyout.
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