Some Physician Noncompetes May Face Chopping Block in Proposed Louisiana Law

Health care providers across the state should take note of The Louisiana State Legislature’s pre-filed House Bill HB483. The pre-bill, sponsored by Representative Mark Wright, would restrict the use of noncompete agreements in physician contracts. Prior attempts to limit the use of noncompetes in this context have been unsuccessful.

Limiting the use of restrictive covenants in physician contracts gives providers added flexibility. This may be a more attractive policy goal than in prior years, since providers are still grappling with the effects of the COVID-19 pandemic. If passed, the bill could bring major changes to the state’s health care market, where the use of onerous noncompetes in physician contracts has become common practice.

We will be monitoring this bill during the 2021 Regular Session and provide updates. Please contact Beau Haynes, Isabel Bonilla-Mathé or any member of Phelps’ Health Care team if you have questions or need compliance advice and guidance.