Q: Non-complete clauses

A: To answer this question, let's break down the key elements:

1. Non-compete clauses in healthcare contracts:

Non-compete clauses (often mistakenly called "non-complete" clauses) are contractual provisions that restrict a healthcare professional from practicing in a certain geographic area for a specified period after leaving their current employment.

2. Common areas for customization in hospital/doctor contracts:

These clauses are often included in the "Restrictive Covenants" section of a contract, which can be customized to fit the specific needs of the hospital and the physician.

3. Key aspects of non-compete clauses in California healthcare contracts:

It's important to note that California law generally prohibits non-compete agreements for employees, including physicians. California Business and Professions Code Section 16600 states that "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."

However, there are some exceptions and nuances:

- While traditional non-compete clauses are generally unenforceable in California, hospitals and medical groups may still include certain restrictive covenants that protect legitimate business interests.

- These may include non-solicitation clauses (preventing a physician from soliciting patients or employees) or confidentiality agreements.

- Certain partnership agreements or sale-of-business contracts may have limited enforceability of non-compete provisions.

4. Customization considerations:

When customizing this section of a contract in California, parties should focus on:

- Ensuring any restrictive covenants are narrowly tailored to protect legitimate business interests

- Avoiding overly broad restrictions that could be deemed unenforceable

- Including provisions that comply with California law and ethical guidelines for medical professionals

It's crucial for both healthcare providers and employers to consult with a California-licensed attorney specializing in healthcare law when drafting or negotiating these contract provisions, as the legal landscape in this area is complex and subject to change.