February 11, 2016 - Noncompete clauses with overly broad scopes difficult to enforce. The proliferation of large-scale healthcare providers has coincided with an uptick in employment clauses barring physicians from taking positions at competing organizations. Now, a hospital in Columbus, Ohio, has come under criticism for the unusually broad scope of its noncompete policy.
An investigation by The Columbus Dispatch reports that Nationwide Children's Hospital has a policy that bans its pediatric specialists from taking jobs within 100 miles of the hospital for two years after they leave. The article notes that while this leaves the Cleveland Clinic in play, it effectively eliminates the chance for a Columbus-based pediatrician to work at Cincinnati Children's Hospital or Dayton Children's Hospital, even though the organizations are in distinctly different metropolitan areas.
Noncompete clauses have become more common recently as a way for providers to ensure that the doctors in whom they invest will be unable to take their existing patients with them by moving to a competing institution. While some states restrict or forbid such clauses, in states where they are legal, they generally tend to be upheld if they're reasonable, as FiercePracticeManagement has previously reported.
When courts look for reasons not to enforce a noncompete, an overly broad scope is among the common weaknesses they're likely to note, along with issues of patient access and selective enforcement. A Columbus employment attorney indicated to the newspaper that while the two-year duration of the noncompete "is not unheard of," the long distance could be problematic.
The reported norm for noncompete boundaries in Central Ohio is 20 miles, according to the article, which could mean trouble for enforcing the clause down the road, should one or more court cases arise to challenge the rule.
Read the article.
Posted on Fierce Healthcare
By Matt Kuhrt
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