Why the Doctor Will NOT See You Now: The Ethics of Enforcing Covenants Not to Compete in Physician Employment Contracts

Abstract

When a physician employment relationship terminates, the physician–patient relationship may also be terminated by enforcement of a covenant not to compete, which typically forces the physician to leave the geographic area for a period of time. This gives rise to several ethical dilemmas. The public interest is compromised when enforcement of these covenants contributes to the shortage of physicians in the community, and individual patients are harmed when their physicians are no longer available. The authors undertook a unique study to explore physician perspectives concerning the ethics of banning a physician from practice and the impact of the ban on both the physician and the physician’s patients. The results identified harmful effects that have not been raised in prior scholarly articles or reported court opinions. After reviewing the legal background of covenants not to compete, this paper presents the results of that study and concludes that resorting to the legal system for enforcement of covenants not to compete is not always the ethical course of action.