Indiana lawmakers expanded the state’s ban on noncompete agreements for physicians to include doctors employed by hospitals.
A previous version of that bill would have extended the ban to all physicians, but lawmakers ultimately scaled it back.
Earlier this year, lawmakers considered banning noncompete agreements for all physicians and their employers. Rep. Ethan Manning (R-Logansport) — one of the bill’s sponsors — said he supported the full ban and believes it would have been fair for all physicians.
“There's a compelling public interest to allow patients to keep their physicians and allow physicians to practice where they want to practice," Manning said. "And not have to leave a community or even leave the whole state just because they want to leave one particular employer."
READ MORE: Indiana House approves ban on noncompete agreements for some doctors
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But Manning said SEA 475 was scaled back after independent practice owners advocated to be exempt from the ban, claiming they need noncompetes to keep their doctors.
The idea of banning noncompetes for all physicians also raised concerns for other lawmakers, Manning said.
"There are some members of the House who they think that by limiting or prohibiting non competes, we are inserting government into private industries," Manning said.
In the future, Manning said he wants to continue the conversation of expanding noncompete bans.
Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.