The bill enacts new provisions in Louisiana law regarding noncompetition agreements for physicians, specifically addressing primary care physicians and other types of physicians. Under the new law, any contract that restrains a primary care physician from practicing medicine cannot exceed three years from the effective date of the initial contract. If the primary care physician terminates the contract early, they may be restricted from practicing in the parish of their principal practice 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, including 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 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 apply to existing contracts, establishing new terms for their duration and geographic restrictions.

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