Physician Non-Compete

Physician Non-Compete Agreements Under Texas Law: Restrictions on Physicians

Medical practices, like many businesses, are interested in maintaining clients (i.e., patients) even after a physician may leave the practice. However, restricting a physician’s ability to practice medicine raises concerns outside of the normal employment context because of the special nature of doctor-patient relationships. Some states completely prohibit non-compete agreements with physicians. But other states, like Texas, impose additional requirements in order to make a physician non-compete enforceable. 

Texas Non-Compete Law: General Guidelines

Under Texas law, a non-compete agreement is enforceable if it meets two requirements:

  1. The agreement is ancillary to or part of an otherwise enforceable agreement (like an employment agreement) at the time the agreement is made.
  2. The agreement contains reasonable limitations as to time, geographical area, and scope of activity to be restrained. These limitations cannot impose a greater restraint than necessary to protect the goodwill or other business interests of the employer.

Texas case law provides guidance on what is considered a “reasonable” limitation and what constitutes goodwill or business interests sufficient for protection. Notably, both can vary widely among industries and professions.        

Additional Requirements for Physician Non-Compete Agreements

In addition to the requirements discussed above, a physician non-compete must also meet several other requirements under Texas law. In order to be enforceable, physician non-competes must also:

  • Allow a physician access to a list of the patients she has treated in the year preceding her separation from the practice.
  • Provide the physician access, with patient consent, to the patient’s medical records.
  • Allow for the patient lists and records to be provided to the physician in the format in which they are ordinarily maintained, unless otherwise agreed upon by the parties to the agreement.
  • Contain a provision providing the physician an option to buyout of the non-compete at a reasonable price, or, upon agreement, for a price set by an arbitrator.
  • Allow the physician to continue the care and treatment of any existing patients with acute illnesses. This applies even after the contract or employment has terminated.

Questions about a Physician Non-Compete Agreement?

Navigating a non-compete, especially involving a physician, can lead to a number of legal questions. Rogge Dunn Group has the answers. The Firm has handled numerous employment disputes involving non-compete agreements in Texas and throughout the country. For more information, contact us here.

MEDIA

Rogge Dunn Quoted in Texas Sports Nation Article Regarding Breach of Contract Lawsuit Filed by Ex-Astros GM Jeff Luhnow Against the Astros Ballclub
READ MORE
Physician Non-Compete Agreements Under Texas Law: Restrictions on Physicians
READ MORE
Texas Payday Law: The Final Paycheck
READ MORE
Jan. 15, 2021: Rogge Dunn to Speak at the Texas Bar’s 29th Annual Advanced Employment Law Seminar on How to Win an Employment Case at Trial
READ MORE
Executive Change of Control Provisions
READ MORE
Dec. 2, 2020: Rogge Dunn to Speak in Live CLE Webinar on Commercial Disputes and the COVID-19 Pandemic
READ MORE
To Compete or Not to Compete: Enforceability of Non-Compete Agreements in Texas
READ MORE
Rogge Dunn Weighs in on Whataburger Discrimination Complaint on Fox 4 News
READ MORE
Employee Rights in Texas
READ MORE
Rogge Dunn Group, PC Receives “2020 Texas Legal Awards Litigation Department of the Year – Small Firm” Award by Texas Lawyer
READ MORE
The Role of the Plaintiff’s Employment Lawyer Before a Lawsuit
READ MORE
The Texas Lawbook Interviews Rogge Dunn on Wage and Hour Litigation Increases
READ MORE
Dec. 1, 2020: Rogge Dunn to Speak in LIVE CLE Webcast on Demystifying the Current Landscape of Broker-Dealers Amidst the COVID-19 Pandemic
READ MORE
Rogge Dunn Group Attorneys Nationally Recognized in Best Lawyers in America 2021 Edition
READ MORE
The Real Estate Investor Guide to Finder’s Fees – Insight from a Real Estate Lawyer
READ MORE
COVID-19 Continues to Create Employment Issues
READ MORE

Contact Us Today!

Contact us to learn how we can help answer your legal questions.

FILL OUT FORM