Tuesday, November 5, 2024

Letter to the Editor -- End Non-Compete Clauses

We often hear about the healthcare workforce shortage ongoing in our country. I feel it pertinent to clarify that much of the shortage is intentionally induced by hospital systems and the non-compete clauses standard in their employment contracts. 

A non-compete clause essentially ties a physician’s hands to a hospital. The hospital can make any changes they desire, and the physician has no recourse. In many cases, if the physician refuses and leaves, they must uproot their entire family and move to a new location to be able to treat patients. This creates an unnecessary access barrier to healthcare nationwide with a far greater impact felt by rural America. 

As an example, I previously served 14 years as the medical director of a 14-bed inpatient physical rehabilitation unit at a local hospital. My non-compete included standard language of not taking patients upon my departure but went even further preventing me from practicing medicine, in any capacity whatsoever, within a 30-mile radius for 2 years. When our hospital was purchased by a local university, the non-compete was increased to a 50-mile radius and was non-negotiable. I refused to sign and left. 

After almost a year, the hospital has not even tried to fill the out-patient void left by my resignation, leaving far too many under treated and without access to the care they need. The overreaching non-compete language commonplace in healthcare employment contracts must be reconsidered as it continues to exacerbate our healthcare workforce shortage and diminish patient care.


Thank you,

Dr. David Lancaster, DO


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