Indiana § 25-22.5-5.5-1.4 "Noncompete agreement"

Indiana Statutes

§ 25-22.5-5.5-1.4 — "Noncompete agreement"

Indiana § 25-22.5-5.5-1.4

Title 25PROFESSIONS AND OCCUPATIONS

Art. 22.5PHYSICIANS

Ch. 5.5Physician Noncompete Agreements

This text of Indiana § 25-22.5-5.5-1.4 ("Noncompete agreement") is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 25-22.5-5.5-1.4 (2026).

Text

4.

(a)As used in section 2.3 of this chapter, "noncompete agreement" means a contract, or any part of a contract, to which a physician is a party that has the purpose or effect of restricting or penalizing a physician's ability to engage in the practice of medicine in any geographic area, for any period of time, after the physician's employment relationship with a hospital, a parent company of a hospital, an affiliated manager of a hospital, or a hospital system has ended. The term includes any provision that does the following:

(1)Prohibits the physician from engaging in the practice of medicine with a new employer.

(2)Imposes financial penalties or repayment obligations, or requires reimbursement of bonuses, training expenses, or similar payments that:

(A)apply to a physician that ha

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4. (a) As used in section 2.3 of this
chapter, "noncompete agreement" means a contract, or any part of a
contract, to which a physician is a party that has the purpose or effect
of restricting or penalizing a physician's ability to engage in the
practice of medicine in any geographic area, for any period of time,
after the physician's employment relationship with a hospital, a parent
company of a hospital, an affiliated manager of a hospital, or a hospital
system has ended. The term includes any provision that does the
following:
(1) Prohibits the physician from engaging in the practice of
medicine with a new employer.
(2) Imposes financial penalties or repayment obligations, or
requires reimbursement of bonuses, training expenses, or similar
payments that:
(A) apply to a physician that has been employed by:
(i) a hospital;
(ii) a parent company of a hospital;
(iii) an affiliated manager of a hospital; or
(iv) a hospital system;
for at least three (3) years; and
(B) are based solely or primarily on the physician's decision to
continue engaging in the practice of medicine with a new
employer.
(3) Requires the physician to:
(A) obtain employer consent; or
(B) submit to equitable relief;
to engage in the practice of medicine with a new employer,
regardless of geographic area or specialty.
(4) Imposes indirect restrictions that have the effect of limiting or
deterring the physician's practice of medicine with a new
employer.
(b) The term does not include the following:
(1) A nondisclosure agreement that protects confidential business
information or trade secrets.
(2) A nonsolicitation agreement that prohibits solicitation of
current employees for a period not exceeding one (1) year after
the physician's employment ends. However, the nonsolicitation
agreement may not restrict:
(A) patient interactions;
(B) patient referrals;
(C) clinical collaboration; or
(D) the physician's professional relationships.
(3) An agreement made in connection with the bona fide sale of
a business entity when the physician owns more than fifty percent
(50%) of the business entity at the time of sale.