Takeaways

• Indiana’s 2025 amendment to its Physician Non-Compete Statute invalidates non-compete agreements between physicians of all types and hospitals (or specific hospital-related entities) entered into after 06.30.25.
• Although the 2025 amendment defines key terms such as “noncompete agreement,” it does not affect the statute’s original or 2023 restrictions or requirements or employers’ existing agreements.
• Employers should immediately assess their practices and procedures for protecting against unfair competition by physicians.

Related links

• Senate Enrolled Act No. 475
• Indiana’s New Restrictions on Physician Non-Compete Agreements
• Indiana Bans Physician Non-Competes for Primary Care Physicians, Adds Restrictions for Others

Article

Following a nationwide trend for physician mobility, Indiana’s legislature has passed another amendment to the state’s 2020 Physician Non-Compete Statute (Ind. Code § 25-22.5-5.5), which limits the enforceability of non-compete restrictions on physicians, to include all physicians employed by hospitals or certain hospital-related entities. Governor Mike Braun signed Senate Enrolled Act No. 475 into law on May 6, 2025, and it takes effect beginning July 1, 2025.

2020 Physician Non-Compete Statute

Prior to 2020, physician non-compete agreements in Indiana were subject to the same legal analysis as agreements with other occupations. Enforceable non-compete restrictions must be reasonable in scope. Overly broad restrictive covenants in...

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