Non-Compete Clause???

[Campy Lobacter]

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I am an off-cycle FP resident, graduating in December. (Due to maternity leave, not being a naughty resident. 😀 )

I have been interviewing but was wondering what a "standard" non-compete clause was. I understand this may vary by area, but one hospital-owned practice just whipped out a 20 mile radius non-compete clause with indeterminant time. The area is relatively isolated, but I wouldn't say entirely rural, so I thought this was... Well... Words I'm probably not able to say on here. Their recruiter assured me that this was "standard," as did the office manager. I just wondered what other typical non-compete clauses were for your area. BTW, this location is in the Midwest.

 

[Shinken]

My non-compete clause actually did not specify miles but rather counties. I was not allowed to work in such-and-such county if I quit. The attorney I consulted said it was pretty standard for my area, and although sometimes you can legally fight (and win) a non-compete clause, the legal cost would not be worth it.

Typically if a judge deems the non-compete as too restrictive or not in the interest of the area (if it's underserved and they don't allow you to work there because of a non-compete, for example) then judges typically rule in your favor. However, as I said, the cost to fight the non-compete in court might not be worth it.

Have a medical contract attorney familiar with your area review your contract and give you their opinion. Their advice is very valuable and worth the cost.

 

[maxheadroom]

1. Get an attorney who specializes in physician contracts who practices in your state. I think the AMA has a referral resource available.

2. If the time is not specified, it isn't enforceable. The general premise is that in a contract ambiguity favors the contracted party (i.e. the person for whom the contract was written).

3. Much of this depends on the laws in your particular state. In some state, non-competes are total garbage. In others, they're almost iron-clad. In general, I wouldn't expect to be able to get out of one if you sign it.

 

[Smurfette]

Also in the Midwest here.

I agree that you need to have a timeframe on this. For instance, if I don't stay for greater than 18 months, my non-compete is not enforceable. Also, it can only be enforced for a certain time period (I can't remember what mine is, would have to look at my contract, but it's not too long). And I made sure to verify with my contract attorney whether it was considered reasonable for the area and enforceable before I signed. (Get a lawyer! DO NOT SIGN ANYTHING without letting a lawyer look it over!!!). Also, keep in mind that depending on how the contract is worded, the non-compete could be enforceable from every location you work at (so if you work at two clinics and they are 10 miles apart, your non-compete is 20 miles from EACH site), or from any location owned by your hospital/health system, or simply from your main office. Make sure the wording is clear so you know what you're getting into. Once again, a lawyer should be able to pick up on these details and discuss them with you.

I have seen contracts saying anywhere from a few miles in a big city (like 5-8 mile radius), the entire county, and anywhere from 10-50 mile radius. IMO, a 50 mile radius is ridiculous and I can't believe people would sign that, but to each his own. 20-25 miles is probably reasonable depending on location for rural sites, but not very reasonable in a big city like chicago where a 25 mile radius may contain hundreds of hospitals. Personally, I looked at a map and thought about whether I'd be interested in practicing in any other locations within my range. I wasn't. Made it easy to agree to sign. Another 5 miles out would've made me renegotiate, though. And even if they tell you it's "standard", you CAN try to negotiate it and your lawyer can help you out with this. They may expect you to try to negotiate and may be willing to give a little, depending on your other requests.

I have a friend who's an FP in a very rural area in the midwest. I think her non-compete is like 25 miles, FWIW. She didn't negotiate it in her contract because she was ok with that. Another FP friend of mine (also in the same state, but urban) has no non-compete clause in her contract. [there's other issues with the contract, though].

Feel free to PM me.

 

[webtek]

Check out the website below. It marks a radius around a point on a map so you could map out your non-compete area.

http://www.freemaptools.com/radius-around-point.htm