Bill Text: FL S0842 | 2022 | Regular Session | Comm Sub

Bill Title: Invalid Restrictive Covenants in Health Care

Spectrum: Bipartisan Bill

Status: (Failed) 2022-03-14 - Died in Rules [S0842 Detail]

Download: Florida-2022-S0842-Comm_Sub.html
       Florida Senate - 2022                              CS for SB 842
       By the Committee on Health Policy; and Senator Brodeur
       588-02342-22                                           2022842c1
    1                        A bill to be entitled                      
    2         An act relating to invalid restrictive covenants in
    3         health care; amending s. 542.336, F.S.; defining the
    4         terms “hospital” and “physician”; specifying that
    5         certain restrictive covenants in employment agreements
    6         between physicians and hospitals do not support a
    7         legitimate business interest; providing a legislative
    8         finding; providing applicability; providing an
    9         effective date.
   11  Be It Enacted by the Legislature of the State of Florida:
   13         Section 1. Section 542.336, Florida Statutes, is amended to
   14  read:
   15         542.336 Invalid restrictive covenants.—
   16         (1)As used in this section, the term:
   17         (a)“Hospital” means a hospital as defined in s.
   18  395.002(13) which is licensed under chapter 395 and part II of
   19  chapter 408.
   20         (b)“Physician” means a person licensed to practice
   21  medicine under chapter 458 or osteopathic medicine under chapter
   22  459.
   23         (2) A restrictive covenant entered into with a physician
   24  who is licensed under chapter 458 or chapter 459 and who
   25  practices a medical specialty in a county wherein one entity
   26  employs or contracts with, either directly or through related or
   27  affiliated entities, all physicians who practice such specialty
   28  in that county is not supported by a legitimate business
   29  interest. The Legislature finds that such covenants restrict
   30  patient access to physicians, increase costs, and are void and
   31  unenforceable under current law. Such restrictive covenants
   32  shall remain void and unenforceable for 3 years after the date
   33  on which a second entity that employs or contracts with, either
   34  directly or through related or affiliated entities, one or more
   35  physicians who practice such specialty begins offering such
   36  specialty services in that county.
   37         (3)A restrictive covenant in an employment agreement
   38  between a physician and a hospital is not supported by a
   39  legitimate business interest if it does not include an option
   40  for the physician to buy out of the restrictive covenant. The
   41  Legislature finds that a restrictive covenant without this
   42  option limits patient access to physicians and increases costs
   43  and is void and unenforceable. This subsection applies to
   44  restrictive covenants entered into on or after July 1, 2022.
   45         Section 2. This act shall take effect July 1, 2022.