Last month we reported on physician and healthcare noncompete laws enacted in 2025.
United States Indiana Employment and HR
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Last month we reported on physician and healthcare noncompete laws enacted in 2025. Shortly after the article was posted, another state joined the ranks: Indiana.
Indiana recently enacted Senate Enrolled Act No. 475 (the "Act"), which amended Indiana's preexisting physician noncompete statute. The amendment prohibits certain physicians from entering noncompete agreements with hospitals, parent companies of hospitals, affiliated managers of hospitals, or hospital systems. The Act is Indiana's third law restricting physician noncompetes, building upon existing legislation passed in 2020 and 2023.
Backdrop: Indiana's 2020 and 2023 Physician Noncompete Restrictions
In 2020, Indiana took its first step toward restricting physician noncompete agreements with the passage of Indiana Code section 25-22.5-5.5. Under the 2020 law, a physician noncompete agreement is only enforceable if it satisfies certain requirements, such as ensuring patient notification of the physician's contact information, ensuring the physicians' access to medical records, and giving the physician the option to purchase a release from the terms of the noncompete covenant at a "reasonable price."
In May 2023, Indiana took a second step toward restricting physician noncompete agreements with the passage of Senate Enrolled Act No. 7 ("SEA...
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