Does Restricting The “Practice Of Medicine” In A Noncompete Agreement Include Restricting The Practice Of Telemedicine? Caution!?

As important as it is to negotiate carefully when entering into an employment contract, it is equally important to negotiate the consequences of termination. The current pandemic has added a pesky new layer to the process as it relates to restrictive covenants (aka noncompete agreements), which are frequently part of employment contracts.

As a law firm that represents physicians in employment contract negotiations with employers from large systems to small groups, we see a wide variety of restrictive covenants. We caution our clients about the serious implications of restrictive covenants. Any violation of a restrictive covenant or even an alleged violation is risky and expensive from both a legal and a business perspective.

We are cautioning our clients about a particular issue, which must be spotted, analyzed and mitigated as much as possible. That is, specifically, determining whether the practice of telemedicine constitutes the practice of “medicine” in interpreting a restrictive covenant and what to do about it.

Our clients are vocalizing that they want to be able to practice telemedicine and do not want to be excluded from doing so. We recommend that you presume telemedicine constitutes the practice of medicine within the context of a restrictive covenant. We recently reviewed a contract and asked the employer about this issue who plainly responded that the practice of medicine includes the practice of telemedicine.

The moral of story? Before you jump on-line, it is best to check your employment agreement to ensure you are not violating a restrictive covenant.

If you have any additional questions or need assistance regarding noncompete agreements, please Contact Us if we may be of assistance.