Sanford Health can no longer include noncompete agreements in its physician contracts after a South Dakota judge ruled they hinder physician-patient relationships, reports the Argus Leader.
Hospitals and clinics in South Dakota use noncompete agreements to keep physicians from working within 20 miles of their previous office for two years after they quit or get fired.
However, Judge Doug Hoffman ruled that such an arrangement inconveniences patients, as they must travel miles away from their doctor's former office if they want to keep seeing that doctor after a termination.
Meanwhile, Sanford Health wants the judge to issue a final order on the noncompete agreement portion of the ruling so that the health system can appeal to the state Supreme Court, notes the Argus Leader.
The ruling was part of a wrongful termination suit filed against Sanford Clinic by JoAnn Ormand.
The case chould have implications for other health systems with similar noncompete arrangements with physicians.
To learn more:
- read the Argus Leader article
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