PRINTER'S NO. 493
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
521
Session of
2023
INTRODUCED BY BROOKS, CAPPELLETTI AND KANE, MARCH 15, 2023
REFERRED TO HEALTH AND HUMAN SERVICES, MARCH 15, 2023
AN ACT
Prohibiting the enforcement of a noncompete covenant entered
into by a health care practitioner.
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 Act.
Section 2. Legislative intent.
The General Assembly finds and declares as follows:
(1) Patient access to health care in this Commonwealth
often depends on geography, transportation and availability
of practitioners.
(2) Most of rural Pennsylvania can be considered health
care deserts in which patients travel two or three hours for
their basic health care needs.
(3) Continuity of care is a fundamental public policy
goal in which patients are most adherent to their health care
goals and build trust with their health care practitioners.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
(4) The global COVID-19 pandemic exacerbated an already
prominent shortage in health care practitioners Statewide.
(5) More health care practitioners are specializing
their education and residencies to increase their wages with
the goal of paying off escalating education loan debts.
(6) This Commonwealth cannot afford to continue losing
health care practitioners to surrounding states and must do
all that it can to attract and retain them.
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:
"Employer." A person or group of persons employing a health
care practitioner at a primary health care facility or office.
"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.
"Noncompete covenant." An agreement between an employer and
a health care practitioner within this Commonwealth that is
designed to impede the ability of the health care practitioner
to compete with the employer.
"Patient." An individual to whom 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.
"Primary health care facility or office." The direct
facility or office location where a health care practitioner
renders the majority of their professional services. For the
purposes of this act, more than 50% of the care and services the
20230SB0521PN0493 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
health care practitioner provides shall define a majority.
"Scope of practice." The activities or professional services
that a health care practitioner may provide to a patient based
on the license that the health care practitioner holds.
Section 4. Applicability.
This act shall apply as follows:
(1) A noncompete covenant shall be deemed contrary to
public policy, void and unenforceable by the employer if the
health care practitioner is dismissed.
(2) This act shall apply to a noncompete covenant
entered into or amended on or after the effective date of
this section or upon the renewal of a health care
practitioner's license, registration or certification within
this Commonwealth, whichever is sooner.
(3) A noncompete covenant shall only apply to the
primary health care facility or office and shall not include
other locations or satellite offices within the health care
system, hospital, or private practice.
Section 5. Notification.
(a) Patient notification.--A patient shall be notified as
follows:
(1) Of the health care practitioner's departure.
(2) Where the health care practitioner will be rendering
services under the health care practitioner's scope of
practice or if there are changes to the health care
practitioner's scope of practice.
(3) Of the process by which the patient may:
(i) choose to follow the health care practitioner;
or
(ii) remain with the health care system, hospital or
20230SB0521PN0493 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
private practice and therefore be assigned a new health
care practitioner to render the patient's care.
(b) Employer responsibility.--The employer is responsible
for notifying the patient within 90 days of the health care
practitioner's departure.
Section 6. Effective date.
This act shall take effect in 30 days.
20230SB0521PN0493 - 4 -
1
2
3
4
5
6
7