Bill > SB0475

This bill prohibits physicians from entering into noncompete agreements with hospitals, hospital parent companies, hospital affiliated managers, or hospital systems on or after July 1, 2025. The bill provides detailed definitions of key terms, including what constitutes a noncompete agreement, which broadly covers any contract provisions that restrict a physician's ability to practice medicine after leaving an employer. Such restrictions include prohibiting employment with a new employer, imposing financial penalties for continuing to practice medicine, requiring employer consent to work elsewhere, or creating indirect barriers to future employment. The bill does allow some exceptions, such as nondisclosure agreements protecting business confidential information, limited nonsolicitation agreements, and agreements made during the sale of a business entity. Importantly, the prohibition only applies to new agreements entered into after July 1, 2025, and does not affect noncompete agreements established before that date. Any noncompete agreement entered into after this date would be considered void and unenforceable. The bill aims to provide physicians with greater professional mobility and remove barriers that might prevent them from practicing medicine where and with whom they choose after leaving an employer.

Health and Social Services, Labor and Employment

https://iga.in.gov/legislative/2025/bills/senate/475/details