Indiana senate passes physician non-compete ban

A bill from Indiana legislation that would ban employers from placing physicians under non-compete agreements has been passed by the state’s senate, WBAA reported Feb. 7. 

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The ban excludes rural and smaller providers. 

“Eliminating non-compete clauses would help increase competition among health care providers, which will lead to lower prices and more options for Hoosiers,” Senator Justin Busch, author of the bill, said on the senate floor Feb. 7. 

Mr. Busch continued that the ban would allow physicians to change practices easily without litigation, leading to higher rates of job satisfaction and lower turnover. 

Opponents of the bill are concerned that banning non-competes will spur bidding wars over physicians, causing hospital recruiting costs to rise. 

The bill is now moving on to be voted on in the state House of Representatives.

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