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PRINTER'S NO. 4034
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2636
Session of
2020
INTRODUCED BY ECKER, GREGORY, MOUL, FRANKEL, SAYLOR, ROWE,
GAYDOS, BARRAR, DOWLING, ZIMMERMAN, HELM, GLEIM, GREINER,
DONATUCCI, BROOKS, ORTITAY, KLUNK AND IRVIN, JUNE 29, 2020
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, JUNE 29, 2020
AN ACT
Prohibiting enforcement of covenants not to compete in health
care practitioner employment agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Health Care
Practitioner Noncompete Agreement Act.
Section 2. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Research studies have found that health care
practitioner shortages have reached alarming proportions in
the United States and, in particular, this Commonwealth.
(2) Pennsylvania is experiencing a health care
practitioner shortage for a litany of reasons.
(3) An increasingly aging population is creating a
greater need for health care practitioners.
(4) School debts for health care practitioners also
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contribute to provider shortages.
(5) Continuity of care for patients is a fundamental
goal for health care practitioners and public health
officials alike.
(6) A covenant not to compete in employment agreements
prohibits and prevents health care practitioners from
rendering care to patients after the health care practitioner
leaves employment, even if the agreements are for a limited
period of time or geographic scope.
(7) It is against public policy for health care
practitioners to be prohibited from rendering care to
patients due to a change in employment.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Covenant not to compete." An agreement between an employer
and a health care practitioner that is designed to impede the
ability of the health care practitioner to compete with the
employer when a separating event occurs.
"Health care practitioner." As defined in section 103 of the
act of July 19, 1979 (P.L.130, No.48), known as the Health Care
Facilities Act.
"Prior patient." An individual to which a health care
practitioner rendered professional services in the health care
practitioner's scope of practice for which compensation has been
received by the health care practitioner, regardless of the
source of the compensation, within three years of the separating
event.
"Scope of practice." The authorized scope of practice of a
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health care practitioner.
"Separating event." A health care practitioner's
discontinuance of employment with a current employer on a
voluntary basis.
Section 4. Prohibition.
(a) Covenant not to compete.--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:
(1) Movement of a health care practitioner to a new
employer.
(2) A health care practitioner from practicing within a
geographic area.
(b) Notification of prior patient.--Notification provided by
a health care practitioner to a prior patient concerning a
separating event is limited to the following information:
(1) Any change in scope of practice.
(2) The new contact information of the health care
practitioner.
(3) The new employer of the health care practitioner.
Section 5. Duty of employer.
Within a reasonable period of time after written notice of
the health care practitioner's intent to separate from the
employer, the employer shall make available to the separating
health care practitioner all contact information and existing
electronic medical records of the prior patients of the health
care practitioner.
Section 6. Activities outside scope of practice.
Section 4 does not apply to a covenant not to compete with
respect to activities, products and services that are outside
the scope of practice of the restricted health care practitioner
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if:
(1) The restriction is reasonable in time, geographic
area and scope of the prohibited activity, product or
service.
(2) The health care practitioner receives reasonable
notice of the scope of the restriction.
Section 7. Construction.
Nothing in this act shall be construed to:
(1) Limit the period of time for which a party may agree
to maintain information as confidential or as a trade secret.
(2) Limit the geographic area within which the
information must be kept confidential or as a trade secret.
(3) Allow a health care practitioner to contact or
solicit individuals who are patients of the former employer
but who are not prior patients of the health care
practitioner.
(4) Create a separate right to the patient list of the
employer.
Section 8. Effective date.
This act shall take effect in 30 days.
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