By State Sen. Justin Busch (R-Fort Wayne)
As we look at ways the state could help improve our health care systems, an important issue to consider is banning non-compete clauses in physicians' contracts.
Non-compete clauses are terms that hospitals include in their physicians' contracts that prohibit doctors from practicing in specific geographic areas for a set amount of time once they leave a certain practice or group.
This week, we passed a bill I authored, Senate Bill 7, which aims to address concerns first brought to me by a physician in our area. He was informed his position was eliminated, but he could not apply or work at other hospitals in the area due to the restrictive non-compete clause in his contract.
Unfortunately, this is not an unique scenario. We are losing skilled physicians to other states due to these burdensome non-competes, and patients are suffering from the lack of doctors in their area.
The elimination of non-competes would allow physicians to move more easily between practices without fear of litigation, leading to higher job satisfaction, lower turnover and an increased number of physicians in Indiana where a gap in the market has appeared. This freedom for physicians would help foster better patient-doctor relationships, and that's what should be at the core of health care. Non-competes have made it impossible for some Hoosiers to stay with the doctors they know and trust.
Indiana ranks as one of the most expensive states for hospital costs. A recent study from the Federal Trade Commission and Source suggests eliminating non-competes would save consumers $148 billion each year in heath costs. Healthy competition creates competitive prices and helps lower health care costs.
By allowing patients to stay with the doctors they trust and know best, Hoosiers can receive the high-quality care and attention they deserve. With only 10 states in the nation having banned non-competes for doctors, Indiana could be ahead of the curve and be the first state in the Midwest to eliminate these restrictive contracts for physicians. The elimination of non-competes is a common-sense solution that will benefit Hoosier patients and doctors.
It’s time to tell our physicians we want them to stay in our Hoosier communities.
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State Sen. Justin Busch (R-Fort Wayne) represents Senate District 16, which
includes portions of Allen and Whitley counties.
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