1Prohibiting enforcement of covenants not to compete in health
2care practitioner employment agreements.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Short title.

6This act shall be known and may be cited as the Health Care
7Practitioner Noncompete Agreement Act.

8Section 2. Declaration of policy.

9The General Assembly finds and declares as follows:

10(1) Research studies have found that health care
11practitioner shortages have reached alarming proportions in
12the United States and, in particular, this Commonwealth.

13(2) Pennsylvania is experiencing a health care
14practitioner shortage for a litany of reasons.

15(3) An increasingly aging population is creating a
16greater need for health care practitioners.

17(4) School debts for health care practitioners also
18contribute to provider shortages.

1(5) Continuity of care for patients is a fundamental
2goal for health care practitioners and public health
3officials alike.

4(6) A covenant not to compete in employment agreements
5prohibits and prevents health care practitioners from
6rendering care to patients after the health care practitioner
7leaves employment, even if the agreements are for a limited
8period of time or geographic scope.

9(7) It is against public policy for health care
10practitioners to be prohibited from rendering care to
11patients due to a change in employment.

12Section 3. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Covenant not to compete." An agreement between an employer
17and a health care practitioner that is designed to impede the
18ability of the health care practitioner to compete with the
19employer when a separating event occurs.

20"Health care practitioner." As defined in section 103 of the
21act of July 19, 1979 (P.L.130, No.48), known as the Health Care
22Facilities Act.

23"Prior patient." An individual to which a health care
24practitioner rendered professional services in the health care
25practitioner's scope of practice for which compensation has been
26received by the health care practitioner, regardless of the
27source of the compensation, within three years of the separating
28event.

29"Scope of practice." The authorized scope of practice of a
30health care practitioner.

1"Separating event." A health care practitioner's
2discontinuance of employment with a current employer on a
3voluntary basis.

4Section 4. Prohibition.

5(a) Covenant not to compete.--A covenant not to compete is
6deemed contrary to public policy and is void and unenforceable
7to the extent the covenant not to compete restricts:

8(1) Movement of a health care practitioner to a new
9employer.

10(2) A health care practitioner from practicing within a
11geographic area.

12(b) Notification of prior patient.--Notification provided by
13a health care practitioner to a prior patient concerning a
14separating event is limited to the following information:

15(1) Any change in scope of practice.

16(2) The new contact information of the health care
17practitioner.

18(3) The new employer of the health care practitioner.

19Section 5.  Duty of employer.

20Within a reasonable period of time after written notice of
21the health care practitioner's intent to separate from the
22employer, the employer shall make available to the separating
23health care practitioner all contact information and existing
24electronic medical records of the prior patients of the health
25care practitioner.

26Section 6. Activities outside scope of practice.

27Section 4 does not apply to a covenant not to compete with
28respect to activities, products and services that are outside
29the scope of practice of the restricted health care practitioner
30if:

1(1) The restriction is reasonable in time, geographic
2area and scope of the prohibited activity, product or
3service.

4(2) The health care practitioner receives reasonable
5notice of the scope of the restriction.

6Section 7. Construction.

7Nothing in this act shall be construed to:

8(1) Limit the period of time for which a party may agree
9to maintain information as confidential or as a trade secret.

10(2) Limit the geographic area within which the
11information must be kept confidential or as a trade secret.

12(3) Allow a health care practitioner to contact or
13solicit individuals who are patients of the former employer
14but who are not prior patients of the health care
15practitioner.

16(4) Create a separate right to the patient list of the
17employer.

18Section 8. Effective date.

19This act shall take effect in 30 days.