IU Health has announced the elimination of noncompete clauses from contracts with primary care physicians, effective Dec. 15. This policy change is part of the health care provider’s commitment to promoting the growth of its physicians and enhancing the care provided to its patients.
Kevin Gebke, senior vice president of Community Medicine at IU Health, stated that removing noncompete clauses will benefit physicians and create an environment for them to deliver exceptional care without any barriers. This change is expected to improve health outcomes in the communities served by IU Health.
In 2023, the Indiana General Assembly passed legislation banning noncompete clauses in new contracts for primary care physicians. While this law did not require existing contracts to be amended, IU Health decided to extend this benefit to physicians already under contract. This decision only applies to primary care physicians, but discussions are ongoing regarding noncompete clauses for other medical specialties.
IU Health intends to continue monitoring and evaluating the impact of this policy change on their mission to make Indiana one of the healthiest states in the nation. The organization’s statement mentioned that discussions are ongoing in response to a nationwide ban on noncompete clauses announced by the Federal Trade Commission in April. The FTC argued that these agreements limit wage growth, hinder the sharing of new ideas, and restrict individuals from pursuing new jobs or starting new businesses.