Noncompetes

[deleted87051]

---

Members do not see this ad.

50-physician anesthesia group must end allegedly illegal noncompete contracts, pay $110K: Washington AG - Becker’s ASC

The state of Washington filed an antitrust consent decree Aug. 25 against Bellingham (Wa.) Anesthesia Associates, urging the group to end allegedly illegal noncompete contracts and pay $110,000 to the state.

www.beckersasc.com

“The state of Washington filed an antitrust consent decree Aug. 25 against Bellingham (Wa.) Anesthesia Associates, urging the group to end allegedly illegal noncompete contracts and pay $110,000 to the state.
The consent decree claims that the 50-physician group used illegal noncompete clauses and exclusive contracts with local providers to take about 90 percent of the market share for physician-administered anesthesia services in Washington's Whatcom and Skagit counties, allegedly in violation of the Washington Consumer Protection Act.
Over the last two decades, Bellingham Anesthesia Associates used exclusive contracts with hospitals and clinics to become the "de facto anesthesia provider" in the two counties, according to an Aug. 26 news release.
The group also allegedly coerced its physicians — many of whom are shareholders — to sign noncompete clauses that prohibited them from practicing anesthesia in the area for three years. Physicians who did not own shares in the group had 18-month noncompetes.
The consent decree claims that Bellingham Anesthesia Associates' alleged monopoly limited the choices medical facilities and surgeons could make, as well as the options for patients. By controlling the local market, the group did not have to compete to provide improved services, offer more services or reduce its prices, according to state Attorney General Bob Ferguson.
The antitrust consent decree, if approved by the Whatcom County Superior Court, would require the group to stop illegally requiring physicians to sign three-year noncompete contracts.
The consent decree also would limit Bellingham Anesthesia Associates' employees' noncompete time to nine months and shareholders' noncompete time to one year.
If a judge approves the agreement, the group would be able to keep exclusive contracts with hospitals that need anesthesiologists on constant standby, but it would be required to cancel contracts with ASCs, medical clinics and other providers that do not need emergency coverage.”

 

[NicMouse64]

50-physician anesthesia group must end allegedly illegal noncompete contracts, pay $110K: Washington AG - Becker’s ASC

The state of Washington filed an antitrust consent decree Aug. 25 against Bellingham (Wa.) Anesthesia Associates, urging the group to end allegedly illegal noncompete contracts and pay $110,000 to the state.

www.beckersasc.com

“The state of Washington filed an antitrust consent decree Aug. 25 against Bellingham (Wa.) Anesthesia Associates, urging the group to end allegedly illegal noncompete contracts and pay $110,000 to the state.
The consent decree claims that the 50-physician group used illegal noncompete clauses and exclusive contracts with local providers to take about 90 percent of the market share for physician-administered anesthesia services in Washington's Whatcom and Skagit counties, allegedly in violation of the Washington Consumer Protection Act.
Over the last two decades, Bellingham Anesthesia Associates used exclusive contracts with hospitals and clinics to become the "de facto anesthesia provider" in the two counties, according to an Aug. 26 news release.
The group also allegedly coerced its physicians — many of whom are shareholders — to sign noncompete clauses that prohibited them from practicing anesthesia in the area for three years. Physicians who did not own shares in the group had 18-month noncompetes.
The consent decree claims that Bellingham Anesthesia Associates' alleged monopoly limited the choices medical facilities and surgeons could make, as well as the options for patients. By controlling the local market, the group did not have to compete to provide improved services, offer more services or reduce its prices, according to state Attorney General Bob Ferguson.
The antitrust consent decree, if approved by the Whatcom County Superior Court, would require the group to stop illegally requiring physicians to sign three-year noncompete contracts.
The consent decree also would limit Bellingham Anesthesia Associates' employees' noncompete time to nine months and shareholders' noncompete time to one year.
If a judge approves the agreement, the group would be able to keep exclusive contracts with hospitals that need anesthesiologists on constant standby, but it would be required to cancel contracts with ASCs, medical clinics and other providers that do not need emergency coverage.”

Sad that this is happening to a private practice, but hopeful if this case holds up, the AMCs anti competes will follow......

 

[deleted87051]

Sad that this is happening to a private practice, but hopeful if this case holds up, the AMCs anti competes will follow......

3 year noncompete is ridiculous.

 

[chessknt]

Non compete in anesthesiology in general is ridiculous. Are you going to steal some company secret or take a patient base with you?

 

[deleted126335]

Sad that this is happening to a private practice, but hopeful if this case holds up, the AMCs anti competes will follow......

this is only relevant for Washington State.

 

[GassYous]

How does it limit surgeon and patient choice at all?

 

[bogatyr]

Non compete in anesthesiology in general is ridiculous. Are you going to steal some company secret or take a patient base with you?

Contract details including negotiated rates with payers are in fact company trade secrets. The danger is a small group breaking off from the larger group to take a lucrative ASC or several. Also it's much easer for AMCs to come in when they can keep as much of the old group as possible.

 

[chessknt]

Contract details including negotiated rates with payers are in fact company trade secrets. The danger is a small group breaking off from the larger group to take a lucrative ASC or several. Also it's much easer for AMCs to come in when they can keep as much of the old group as possible.

I dont see how an employee would need to know the negotiated payor rate or how a NDA wouldn't cover that without impeding the right to work if that was something they needed to know. Saying a noncomplete is necessary to protect against competition seems to go against the idea of capitalism. If you can't deliver the services for the best price you lose, welcome to corporate 'Murca.

Want to keep people in the group without a potentially illegal coercive contract clause? Make them ****ing partners so they want the group to succeed instead of eating the fruits of their labor.

 

[deleted126335]

I dont see how an employee would need to know the negotiated payor rate or how a NDA wouldn't cover that without impeding the right to work if that was something they needed to know. Saying a noncomplete is necessary to protect against competition seems to go against the idea of capitalism. If you can't deliver the services for the best price you lose, welcome to corporate 'Murca.

Want to keep people in the group without a potentially illegal coercive contract clause? Make them ****ing partners so they want the group to succeed instead of eating the fruits of their labor.

Exploitation is more profitable.

 

[deleted87051]

I dont see how an employee would need to know the negotiated payor rate or how a NDA wouldn't cover that without impeding the right to work if that was something they needed to know. Saying a noncomplete is necessary to protect against competition seems to go against the idea of capitalism. If you can't deliver the services for the best price you lose, welcome to corporate 'Murca.

Want to keep people in the group without a potentially illegal coercive contract clause? Make them ****ing partners so they want the group to succeed instead of eating the fruits of their labor.

Noncompete clause in this case was especially onerous for partners at 3 years. Employees had 18month noncompetes.
I’m sure the purpose was to prevent people from jumping ship and starting their own group.

 

[Mman]

I'm curious about the history of noncompetes in the state of Washington. Was this the first medical one to ever get tossed out?

 

[DirtDocMD]

Non compete in anesthesiology in general is ridiculous. Are you going to steal some company secret or take a patient base with you?

A “same site” non-compete makes sense. Don’t want one, or a few, members snaking the contract out from under the rest, or signing on with an AMC that makes a competing offer at the hospital.

I’ll agree that a “geographical boundaries” non-compete is BS for anesthesia, though.

 

[Shimmy8]

Mine is for sites within 10 miles of where my group operates.

 

[IMGASMD]

Mine is for sites within 10 miles of where my group operates.

That’s pretty ****ty in a small state or a very concentrated area, like NYC for example.

Also depends on how they define “group operates”. We have a few surgicenters that we cover. If you draw a 10 mile radius from all of them, I probably wouldn’t able to work in a 50+ mile radius.

Depends on the AMC and how desperate they are, they may/may not welling to deal. Or they’d just say, “it’s the same contract everyone signs….”