Tuesday, February 14, 2023
Indiana is losing skilled physicians to other states due to burdensome non-compete clauses, and as a result, patients are limited due to the lack of trusted doctors in their area.
Non-compete clauses are terms hospitals include in their physicians' contracts to prohibit doctors from practicing in specific geographic areas for a set amount of time once they leave a certain practice or group.
Senate Bill 7 would ban non-compete clauses and allow physicians to move more freely 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.
Enabling doctors to compete on their own terms would promote competition in the health care marketplace and help lower prices. The Federal Trade Commission suggests eliminating non-competes would save consumers $148 billion each year in health costs.
Only 10 states in the nation have ended non-compete restrictions and Indiana could be the first Midwest state to adopt this legislation.
Senate Republicans understand having a healthy population is key to our state's success. Retaining skilled doctors, building strong physician-patient relationships and managing health care costs in Indiana are key to fostering healthy families and a strong workforce.
SB 7 passed the Senate and will now move to the House of Representatives for further consideration.
For more information about SB 7, click here.
