2016 -- S 2578 SUBSTITUTE A

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LC004698/SUB A

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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: Senators Goldin, Satchell, and Miller

     Date Introduced: February 25, 2016

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

unenforceable the remaining provisions of any such contract or agreement.

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

not be limited to, the following:

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

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

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

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

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

relationship with any current patient of the employer.

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

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

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

     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

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

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

five (5) years.

     This act would take effect upon passage.

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