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Bill > H4767


SC H4767

SC H4767
Physician Noncompete Contract Prohibition


summary

Introduced
01/13/2026
In Committee
03/26/2026
Crossed Over
03/26/2026
Passed
Dead

Introduced Session

126th General Assembly

Bill Summary

Amend The South Carolina Code Of Laws By Adding Chapter 9 To Title 41 So As To Prohibit Noncompete Clauses In Physician Contracts, To Protect Patient Freedom Of Choice, To Define Impermissible Restrictions On Physician Practice, To Allow Certain Recoupment Of Expenses And Protection Of Legitimate Business Interests, And To Provide For Applicability.

AI Summary

This bill, titled the "Physician Noncompete Contract Prohibition Act," amends South Carolina law to prohibit noncompete clauses in contracts with physicians, aiming to protect patients' freedom to choose their doctors. It declares that any contract clause preventing a physician from practicing medicine in a specific geographic area, continuing to treat current patients upon leaving a practice, or establishing new patient relationships at a patient's request is void and against public policy. The bill also outlines specific requirements for physicians notifying patients of their departure, including how patients can obtain medical records and seek continued treatment, and allows employers to handle this notification. While generally prohibiting noncompetes, the bill permits employers to recoup certain expenses from physicians who have worked for them for less than three years, such as relocation costs, signing bonuses, or recruitment expenses, provided these are clearly outlined in the contract. It also allows for the repayment of retention bonuses within two years of signing and permits employers to protect legitimate business interests like trade secrets and confidential information. These provisions apply to new contracts and contract renewals signed on or after the bill's effective date.

Committee Categories

Business and Industry, Health and Social Services

Sponsors (29)

Last Action

Committee report: Favorable Labor, Commerce and Industry (on 05/05/2026)

bill text


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