Restrictive Covenants in Physician Employment Contracts Analyzed in the Journal of American Physicians and Surgeons (AAPS)
TUCSON, Ariz., Aug. 31, 2026 (GLOBE NEWSWIRE) -- If an employment arrangement does not work out, physicians may have severely limited options for working elsewhere. Jeffrey Segal, M.D., J.D., explains issues to be considered in contract negotiations in the fall issue of the Journal of American Physicians and Surgeons. Dr. Segal is the founder of Medical Justice.
With a non-compete agreement, a physician may be forced to leave the community, to start over in a distant locale, to sell his house in a down market, to remove children from their school, and to ask his spouse to quit a current well-paying job, Dr. Segal states.
An employer may have a legitimate business interest worthy of protection, Dr. Segal explains, if he has a considerable investment in recruiting the employee and setting up his practice.
Congress has dabbled—most recently with the proposed Workforce Mobility Act of 2025—in attempting to limit non-competes, but at present non-competition law remains a state-by-state affair. Dt. Segal spotlights California, Texas, Massachusetts, and Florida.
Another form of restrictive covenant is a patient non-solicitation agreement. Employers treat their patients as belonging to them. They would ideally prefer to prevent the now departed physician from rekindling his prior patient-physician relationships.
Dr. Segal outlines tactical tips for physicians to consider before signing a contract, and the issues in automatic contract renewals (“evergreen provisions”). He also suggests ways in which physicians bound by a non-compete can continue working without moving after employment is terminated.
He concludes that: “Employment covenants can feel like boilerplate, yet they govern where a physician lives, whom they treat, and whether patients keep the doctor they trust. Read every page while you still have a chair, a pen, and leverage.”
The Journal of American Physicians and Surgeons is published by the Association of American Physicians and Surgeons (AAPS), a national organization representing physicians in all specialties since 1943.
Contact: Jeffrey Segal, M.D., J.D., jsegal@medicaljustice.com or Jane M. Orient, M.D., (520) 323-3110, janeorientmd@gmail.com
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