Most of the state’s counties are experiencing a shortage of primary care physicians. Some lawmakers and advocates said noncompete agreements contribute to those shortages. Senate lawmakers advanced Senate Bill 475Wednesday to ban these agreements for doctors.
Noncompete agreements often prohibit workers from leaving a job and taking another in the same industry.
Dr. Elizabeth Struble represents the Indiana State Medical Association. She said the bill will help physicians continue to practice in their community when their employment changes.
“If a specialist is unhappy in their current situation, they often have to, as you’ve already heard, either leave their area or often leave the state in order to find a new employment,” Struble said.
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Struble said when doctors do leave, it can lead to longer wait times for patients, especially in rural areas of the state.
Another advocate for this legislation believes it should be expanded to Advanced Practice Registered Nurses. Darla Berry is with the Coalition of Advanced Practice Registered Nurses of Indiana.
Berry said five years ago, she helped build a midwife practice for a large health organization. She said she identified an ideal candidate for a job but later discovered they were bound by a noncompete agreement from their previous employer.
“Noncompete agreements are an issue that impact not only physicians but also APRNs, NPAs, providers who are essential to health care provision across the state,” Berry said.
Currently, the bill would only apply to physicians hired after July 1, 2025. It would also ban compensation and incentives for physicians who refer clients to other providers in the same network.
Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org .
