Some employers may require new individual physicians to enter into non-competition agreements before beginning practicing medicine with the group. Learn more about how Colorado has update their non-competition agreement law.
Non-competition Agreement
On April 2, 2018, Governor John Hickenlooper signed Senate Bill 18-082 Physician Non-compete Exemption for Rare Disorder into law. Upon the Governor’s signature, the bill went into effect immediately.
In order to protect patients with rare disorders who would otherwise not have ready access to a physician with the necessary expertise to treat the disorder was the purpose of this change. Current law, physicians may have been prohibited from treating former or prospective patients after they left a group practice.
Employment Agreements
Generally employment agreements between individual physicians and their employers are included in non-compete agreements. For instance, in Colorado, any agreement between physicians that restricts physicians to practice medicine is voided after termination. But in this case, non-compete agreements allowing for departing physicians to continue practicing medicine, may still have to pay damages relating to resulting competition, depending upon the terms of the agreement.
NOTE: Damages claimed by former employers must be reasonably related to injury, i.e. Lost Revenue due to patients following departing physicians.
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