Adopted as Amended 2017-17
RESOLUTION
Subject: Submitted by: Referred to:
Restrictive Covenants Greater Louisville Medical Society Reference Committee
WHEREAS, a restrictive covenant( also referred to as a non-compete agreement or a covenant not to compete) limits or prevents a physician ' s practice of medicine, usually within a defined geographic region for a specified amount of time with a particular business interest; and
WHEREAS, restrictive covenants are subject to state law, with some states wholly disallowing non-compete agreements in physician contracts and others placing limitations on what stipulations may be considered reasonable in non-compete agreements; and
WHEREAS, the American Medical Association, in a Medical Ethics Opinion, states that restrictive covenants have the potential to restrict competition, disrupt continuity of care, and deprive the public of medical services; and
WHEREAS, in a state such as Kentucky where physician shortages are common in large geographic areas, and a restrictive covenant could force a physician to leave an already underserved area in order to seek new employment, furthermore, the case of Charles T. Creech v. Brown from the KY Supreme Court case in 2014 further limited restrictive covenants; and
WHEREAS, with various health systems employing Kentucky physicians in an employment model, and the business uncertainty of those health systems coupled with a restrictive covenant should not restrict a physician from being able to practice in their community; now, therefore, be it
RESOLVED, that the Kentucky Medical Association study how physician employment contract provisions- including restrictive covenants- may impact continuity, quality, and availability of care in Kentucky and report back to the House of Delegates at the 2018 Annual Meeting.
KMA House of Delegates August 2017