Adopted as Amended 2017-17
RESOLUTION
Subject : Submitted by : Referred to :
Restrictive Covenants Greater Louisville Medical Society Reference Committee
WHEREAS , a restrictive covenant ( also referred to as a non-compete agreement or a covenant not to compete ) limits or prevents a physician ' s practice of medicine , usually within a defined geographic region for a specified amount of time with a particular business interest ; and
WHEREAS , restrictive covenants are subject to state law , with some states wholly disallowing non-compete agreements in physician contracts and others placing limitations on what stipulations may be considered reasonable in non-compete agreements ; and
WHEREAS , the American Medical Association , in a Medical Ethics Opinion , states that restrictive covenants have the potential to restrict competition , disrupt continuity of care , and deprive the public of medical services ; and
WHEREAS , in a state such as Kentucky where physician shortages are common in large geographic areas , and a restrictive covenant could force a physician to leave an already underserved area in order to seek new employment , furthermore , the case of Charles T . Creech v . Brown from the KY Supreme Court case in 2014 further limited restrictive covenants ; and
WHEREAS , with various health systems employing Kentucky physicians in an employment model , and the business uncertainty of those health systems coupled with a restrictive covenant should not restrict a physician from being able to practice in their community ; now , therefore , be it
RESOLVED , that the Kentucky Medical Association study how physician employment contract provisions - including restrictive covenants - may impact continuity , quality , and availability of care in Kentucky and report back to the House of Delegates at the 2018 Annual Meeting .
KMA House of Delegates August 2017