Connecticut & Rhode Island update non-compete restrictions for physician contracts: 6 things to know

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Connecticut and Rhode Island imposed new restrictions on non-compete provisions for physicians this past summer, according to a Lexology report.

Here are the key notes on Connecticut’s restrictions, which were effective July 1:

1. New or renewed non-competes can’t restrict the physician's competitive activities for longer than one year.

2. The restrictions can’t reach beyond 15 miles of the primary site for the physician practice, including the office, facility or location where the physician derives most revenue.

3. The provision can only be enforced if it’s made in anticipation of a partnership or ownership agreement, according to the report. The provision can also be terminated in a cause-termination of a contractual relationship or employment.

Here are the key notes on Rhode Island’s restrictions, which went into effect July 12:

1. The non-compete cannot restrict the right to practice medicine for any period of time after termination in any geographic region.

2. There cannot be restrictions on the physician’s right to solicit or seek a physician/patient relationship with a current patient of the employer.

3. The restrictions don’t apply in a purchase and sale of a physician practice if the restrictive covenant is five years or less.

The authors of the report recommend providers note the changes and the agreements “may need significant modifications to be in compliance with new standards.”

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