COLUMBUS, Ohio — Republican State Senator Terry Johnson has introduced a bill in the Ohio legislature aimed at regulating the use of noncompete provisions in healthcare professional employment contracts with nonprofit hospitals. The bill, known as Senate Bill No. 126, was introduced this week.
If enacted, the legislation would establish Section 3727.62 of the Revised Code, outlining specific guidelines for noncompete agreements in the healthcare sector.
Supported by Senators Hoagland and Sykes, the bill seeks to strike a balance between protecting the interests of healthcare professionals and the operational needs of nonprofit hospitals. By regulating the use of noncompete provisions, the legislation aims to prevent excessive restrictions on healthcare professionals’ future employment opportunities.
The proposed legislation defines key terms crucial to its application. These include “advanced practice registered nurse,” “health care professional employee,” “management employee,” “nonprofit hospital,” “physician,” and “physician assistant.”
Under the bill, nonprofit hospitals would be prohibited from requiring health care professional employees or prospective employees to agree to noncompete provisions as a condition of employment. Such provisions would prevent employees from seeking employment in a specific geographic area, with a particular employer, or in a particular industry or practice specialty after their employment with the hospital ends.
However, nonprofit hospitals would be allowed to require healthcare professional employees or prospective employees to refrain from obtaining employment within a radius of fifteen miles from the physical location where they were previously employed with the hospital. This restriction would be limited to a maximum of six months, and the hospital must specify a particular physical address from which the fifteen-mile radius will be measured.
The bill also clarifies that nonprofit hospitals can still impose restrictions on healthcare professional employees during the term of their employment contract. These restrictions may include refraining from seeking employment in a specified geographic area, with a particular employer, or in a particular industry or practice specialty.
To ensure compliance, the legislation deems any agreement by a healthcare professional employee to waive their rights under the bill’s provisions as void and unenforceable.
If a health care professional employee or prospective employee believes a nonprofit hospital has violated the bill’s regulations, they would have the option to file a civil action against the hospital in a court of competent jurisdiction. The hospital could be held liable for damages, attorney’s fees, and costs incurred by the affected individual.
Senate Bill No. 126 is expected to undergo scrutiny and debate within the General Assembly in the coming weeks. Supporters of the bill hope it will strike a fair balance between protecting healthcare professionals’ rights and ensuring the efficient operation of nonprofit hospitals.
