H0681B0640A00663 AJB:JMT 04/06/21 #90 A00663
AMENDMENTS TO HOUSE BILL NO. 681
Sponsor: REPRESENTATIVE FRANKEL
Printer's No. 640
Amend Bill, page 2, line 6, by striking out "prohibits and
prevents" and inserting
can prohibit and prevent
Amend Bill, page 2, lines 10 through 12, by striking out all
of said lines and inserting
(7) It is in the public interest to limit the use of
restrictive covenants in health care.
Amend Bill, page 2, by inserting between lines 23 and 24
"Primary health care facility or office." The office,
facility or location where a majority of the revenue derived
from a health care practitioner's services are generated.
Amend Bill, page 2, line 30; page 3, line 1; by striking out
"The authorized scope of practice of a" in line 30 on page 2 and
all of line 1 on page 3 and inserting
The activities or professional services a health care
practitioner may provide to a patient based on the license the
health care practitioner holds.
Amend Bill, page 3, lines 6 through 12, by striking out all
of said lines and inserting
(a) General rule.--A covenant not to compete is deemed
contrary to public policy and is void and unenforceable to the
extent the covenant not to compete restricts the right of a
health care practitioner to practice in any geographic area for
any period of time after a separating event.
(b) Exception.--An employer may enforce a covenant not to
compete if all of the following apply:
(1) The health care practitioner's primary health care
facility or office is located in a county of the sixth,
seventh or eighth class.
(2) The geographic restriction is less than a 45-mile
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radius from the primary health care facility or office of the
health care practitioner.
(3) The length of the covenant not to compete is no more
than two years.
(4) The restriction applies only to the primary health
care facility or office of the health care practitioner.
(c) Non-affiliation.--Notwithstanding subsection (b)(1) and
subject to subsection (b)(2), (3) and (4), an employer in any
county of this Commonwealth may enforce a covenant not to
compete if the employer is a provider-owned independent practice
not affiliated with any health care system, health care provider
or hospital.
Amend Bill, page 3, line 13, by striking out "(b)" and
inserting
(d)
Amend Bill, page 3, by inserting between lines 19 and 20
(e) Construction.--
(1) Nothing in this section shall be construed to
prohibit the enforcement of a provision in any contract or
agreement with a health care practitioner that allows for the
recovery of expenses incurred by an employer to recruit a
health care practitioner or to establish the health care
practitioner's patient base, if all the following apply:
(i) The health care practitioner did not discontinue
employment with the employer for cause.
(ii) The expenses are reasonably allocated to the
health care practitioner and are reasonably amortized
over a period of time not to exceed five years from the
commencement of the relationship.
(2) As used in this subsection, the term "for cause"
includes any of the following:
(i) A health care practitioner's compensation or
fringe benefits are materially reduced.
(ii) A health care practitioner's authority,
responsibility and duties are materially altered to the
detriment of the health care practitioner.
(f) Damages clauses.--A contract or agreement with a health
care practitioner may include a liquidated damages clause for
the expenses incurred under subsection (e) if the amount does
not exceed 50% of the health care practitioner's annual
compensation, excluding fringe benefits, in the first year of
the relationship and is not otherwise unreasonably excessive.
Amend Bill, page 3, lines 21 through 26, by striking out all
of said lines and inserting
Within 60 days after a separating event, an employer shall
provide notice of a health care practitioner's departure to the
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health care practitioner's prior patients. The notice under this
section shall include information to the prior patients
regarding how to request the transfer of their medical records
to the departing health care practitioner.
Amend Bill, page 3, line 30, by inserting a period after
"practitioner"
Amend Bill, page 4, lines 1 through 6, by striking out all of
said lines
Amend Bill, page 4, by inserting between lines 18 and 19
Section 8. Applicability.
This act shall apply to an agreement entered into or amended
on or after the effective date of this section and upon the
renewal of a health care practitioner's license, registration or
certification in this Commonwealth on or after the effective
date of this section.
Amend Bill, page 4, line 19, by striking out "8" and
inserting
9
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