The bill enacts new provisions regarding noncompetition agreements for physicians in Louisiana, specifically addressing the duration and conditions under which such agreements can be enforced. For primary care physicians, any noncompete clause cannot exceed three years from the effective date of the initial contract, and subsequent agreements cannot include noncompete provisions. If a primary care physician terminates their contract early, they may be restricted from practicing in their parish and up to two contiguous parishes for a maximum of two years. For other physicians, the noncompete duration is extended to five years, with similar geographic restrictions applicable upon early termination.

Additionally, the bill outlines exemptions for certain physicians, specifically those employed by rural hospitals or federally qualified healthcare centers operating in designated rural parishes. These exempted physicians will instead be subject to different provisions outlined in the existing law. The new regulations will apply to contracts entered into on or after the effective date of the Act, which is set for January 1, 2025, and will also retroactively affect existing contracts by establishing new terms and geographic limitations.

Statutes affected:
SB165 Original: 23:921(A)(1)