Creating a non-competition agreement

On Behalf of | Oct 15, 2021 | Business Formations and Transactions

Physician business owners in Texas are busy people. Not only do they administer medical care to their patients, but they also run a successful business. If one of their physician employees needs to be terminated, a business owner may need to come up with a non-competition agreement for them. Creating a non-competition agreement is important for a medical practice owner.

In order to prevent a physician from leaving and setting up their own practice in town and taking their patients with them, a non-compete agreement becomes necessary. There are many items that should be a physician non-compete agreement. These include:

  • Length of time of non-compete agreement
  • Geographic scope of the restriction to practice medicine
  • Determine a buy-out amount of the non-compete agreement
  • Access to patient lists for the departing physician
  • Access to medical records of patients the departing physician has treated in the last year
  • And more

Many disputes can arise in a Texas non-compete agreement for physicians and practice owners. A legal professional who is skilled in health care law can help their client understand how to draft a non-compete agreement and what needs to be included. They can also help with any disagreements that arise surrounding the non-compete agreement. Many times, these disagreements are over whether the required buyout amount is reasonable. Non-compete clauses in the healthcare industry are also under scrutiny both in Texas and across the U.S. Because of this, the employment contract an employer establishes should be reviewed by an attorney who is knowledgeable in physician non-compete clauses.