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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