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, specifically those employed by rural hospitals or federally qualified healthcare centers operating in designated rural parishes. For these exempted physicians, other existing provisions of the law will apply instead of the new restrictions. The bill will take effect on January 1, 2025, and will apply to contracts entered into on or after that date, with existing contracts being subject to the new terms starting from the effective date.

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