2016 -- H 7586 SUBSTITUTE A

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LC004667/SUB A/2

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - BOARD OF MEDICAL LICENSURE

AND DISCIPLINE

     

     Introduced By: Representatives Ajello, Corvese, Kazarian, Naughton, and Messier

     Date Introduced: February 11, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 5-37 of the General Laws entitled "Board of Medical Licensure and

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Discipline" is hereby amended by adding thereto the following section:

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     5-37-33. Restrictive covenants. – (a) Any contract or agreement which creates or

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establishes the terms of a partnership, employment, or any other form of professional relationship

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with a physician licensed to practice medicine pursuant to this chapter which includes any

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restriction of the right of such physician to practice medicine shall be void and unenforceable

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with respect to said restriction; provided, however, that nothing herein shall render void or

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unenforceable the remaining provisions of any such contract or agreement.

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     (b) Restrictions rendered void under subsection (a) of this section shall include, but shall

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not be limited to, the following:

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     (1) The right to practice medicine in any geographic area for any period of time after the

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termination of such partnership, employment, or professional relationship; and

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     (2) The right of such physician to provide treatment, advise, consult with, or establish a

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physician/patient relationship, with any current patient of the employer; and

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     (3) The right of such physician to solicit or seek to establish a physician/patient

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relationship with any current patient of the employer.

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     (c) Notwithstanding the foregoing, the prohibition on physician covenants shall not apply

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in connection with the purchase and sale of a physician practice, provided the restrictive covenant

 

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and/or non-compete covenant is for a period of a time of no more than five (5) years.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - BOARD OF MEDICAL LICENSURE

AND DISCIPLINE

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     This act would render restrictive covenants in employment agreements with physicians

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void and unenforceable except where restrictive covenants and non-compete clauses are in the

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purchase and sale agreement of a physician's practice and they are for a period of no more than

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five (5) years.

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     This act would take effect upon passage.

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