A new law passed by the Indiana General Assembly—Senate Enrolled Act No. 475—will prohibit non-compete agreements between physicians and hospitals starting July 1, 2025. Once signed into law by Governor Braun, this legislation will prevent hospitals, hospital systems, and affiliated managers from including restrictive non-compete clauses in physicians’ contracts.
Unlike previous legislation that targeted only primary care physicians, this new law applies to all licensed physicians in Indiana. It defines a “non-compete agreement” as any restrictions that limit a physician’s ability to continue practicing medicine with a new employer.
The law does not apply to private practices or non-hospital employers and still allows for nondisclosure agreements and certain nonsolicitation clauses under specific conditions.
Hospitals will need to revise their employment and recruitment strategies, as retaining physicians will increasingly depend on workplace culture and patient relationships rather than legal restrictions.
To learn more about the scope, timing, and practical impact of this legislation, you can read the full article by Hall Render.
