Bill Text: MS SB2685 | 2018 | Regular Session | Introduced

Mississippi Senate Bill 2685 (Prior Session Legislation)

Introduced

Bill Title: Physician contracts; prohibit noncompete clauses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-02-06 - Failed [SB2685 Detail]

Download: Mississippi-2018-SB2685-Introduced.html

MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Public Health and Welfare; Judiciary, Division A

By: Senator(s) Hopson

Senate Bill 2685

AN ACT TO CREATE NEW SECTION 87-11-1, MISSISSIPPI CODE OF 1972, TO PROHIBIT NONCOMPETE AGREEMENTS IN PHYSICIAN CONTRACTS; TO DEFINE TERMS; TO CREATE EXCEPTIONS; TO PROVIDE FOR REIMBURSEMENT BY THE TERMINATED PHYSICIAN IN SOME CIRCUMSTANCES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 87-11-1, Mississippi Code of 1972:

87-11-1. (1) For the purposes of this section, the following terms have the meanings ascribed unless the context clearly requires otherwise:

(a) "Contract" means a legal written agreement that becomes binding when signed.

(b) "Partnership" means a voluntary contract between two (2) or more persons to pool some or all of their assets into a business, with the agreement that there will be an agreed-upon sharing of profits and losses.

(c) "Physician" means a person with a license to practice in this state under the provisions of Title 73, Chapter 25, Mississippi Code of 1972.

(2) Except as provided in subsection (4) of this section, If a provision in a contract that creates or establishes the terms of a partnership, employment, or any other form of professional relationship with a physician includes any restriction of the right of the physician to practice medicine, that provision shall be void and unenforceable with respect to the restriction. Nothing in this section shall render void or unenforceable the remaining provisions of any such contract or agreement.

(3) Restrictions rendered void under subsection (1) of this section shall include, but shall not be limited to, the following:

(a) The right to practice medicine in any geographic area for any period of time after the termination of the partnership, employment, or professional relationship;

(b) The right of the physician to provide treatment or to advise, consult with, or establish a physician-patient relationship with a patient of the employer; and

(c) The right of the physician to solicit or seek to establish a physician-patient relationship with a patient of the employer.

(4) The prohibition on physician covenants shall not apply in connection with the purchase and sale of a physician practice if the restrictive covenant or noncompete covenant is for a period of time of no more than five (5) years.

(5) Nothing in this section shall impair the obligation of a contract that is terminated at the sole option of the physician to reimburse any moving expenses or contract bonus or other inducement to sign the contract, not to exceed one-tenth (1/10th) of the annual salary received by the terminated physician from that employer, unless the contract termination is in connection with the purchase and sale of a physician practice.

SECTION 2. This act shall take effect and be in force from and after July 1, 2018.