In a move aimed at promoting growth among its physicians and improving patient care, IU Health recently announced that it will be removing noncompete clauses from all contracts with primary care physicians starting on December 15. The decision was influenced by a 2023 law passed by the Indiana General Assembly that banned noncompete clauses in new contracts for primary care physicians. Although the law did not apply to existing contracts, IU Health decided to extend the benefit to physicians already under contract.
The focus is currently on primary care physicians, but discussions are ongoing about removing noncompete clauses for other medical specialties. IU Health is also considering the impact of this decision on its overall mission to improve the health of Indiana residents. The organization will continue to monitor the situation and evaluate its effects. In a related development, the Federal Trade Commission announced a nationwide ban on noncompete clauses in April. The FTC believes that such clauses restrict wages and innovation, as well as limit individuals’ freedom to pursue new opportunities.
