Noncompete clauses are facing increasing scrutiny, as physicians, states and even the Federal Trade Commission look to reform policy.
Here is a breakdown of entities facing noncompete lawsuits:
Hospitals
1. Pediatric intensivist David Lankford, MD, sued his former employer, Fort Wayne, Ind.-based Lutheran Hospital, to get out of a noncompete clause. His contract prohibited him from working within 30 miles of the hospital for a year after ending employment, but in 2023, the state passed a noncompete ban for primary care physicians that excluded specialty physicians.
Physicians
1. According to a report from NBC News, HCA Healthcare-affiliated, Savannah, Ga.-based Memorial Health University Medical Center threatened one of its former OB-GYNs with a suit based on noncompete agreements when the physician went to work at a nearby clinic focused on treating low-income women.
2. Surgeon Anjay Khandelwal, MD, was sued by his former employer, Cleveland-based MetroHealth, when he took a position at Akron (Ohio) Children's Hospital. Dr. Khandelwal took his case to the state's Supreme Court in 2022 and won the right to practice at Akron Children's.
Physician networks
1. Urologist Eric Rottenberg, MD, sued his former employer, Scranton, Pa.-based Commonwealth Health Physician Network, for enforcing a noncompete agreement that limits his ability to practice locally. Dr. Rottenberg worked for several of the health system's hospital locations from May to November 2023 through a three-year contract, which includes a clause barring him from working within a 20-mile radius that would be enforced for the following two years, but then received a job offer from an alleged competitor.
Anesthesia providers
1. Two hospitals, St. Joseph's Hospital in Syracuse, N.Y., and Holy Cross Hospital in Fort Lauderdale, Fla., are alleging North American Partners in Anesthesia's noncompete clauses violate antitrust laws. The lawsuits allege the anesthesia provider uses noncompete clauses to restrict competition and demand exorbitant fees.
2. U.S. Anesthesia Partners will end its contracts with five Colorado hospitals due to its alleged monopoly in the state's Denver and Durango markets, with a voluntary agreement with Colorado's attorney general. U.S. Anesthesia Partners will also end its noncompete agreement practice within 18 months of the agreement taking effect.