LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 561 HLS 21RS 940
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 18, 2021 2:29 PM Author: BAGLEY
Dept./Agy.: LSU
Subject: physician employment contracts Analyst: Shawn Hotstream
PHYSICIANS EG SEE FISC NOTE OF EX Page 1 of 1
Prohibits certain post employment restraints on the practice of medicine on physicians employed by the state
Proposed law provides that no contract or agreement which restricts any physician employed by any entity of state
government from the practice of medicine upon termination of employment shall be enforceable. Proposed law provides that
no provision to restrict the practice of medicine shall be enforceable upon a physician who is terminated without cause by
the employer.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Any fiscal impact to LSU Health Sciences Center - Shreveport is indeterminable. To the extent eliminating non compete
contract restrictions would result in an increased pattern of newly recruited physician terminations at LSU HSC, there could
be additional expenses (self generated non appropriated restricted funds) associated with physician recruitment. However,
such fiscal impact is speculative.
Information provided by LSU indicates there may be additional recruitment costs under this measure, as new clinical faculty
are paid a base salary and a supplemental salary (approximately $100,000 to $300,000 annually) for two years until the
physicians build up their practice. To the extent a physician would leave within the two year term after being recruited, the
supplemental payment cycle would start again for another two years, resulting in an extension of the supplemental
payment. Any additional recruitment cost is speculative as a result of this measure.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director