Bill
Bill > A1647
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
Except as provided below, this bill provides that any contract or agreement that creates or establishes the terms of a partnership, employment, or other form of professional relationship with a licensed physician, which includes any restriction of the right of the physician to practice medicine in any geographic area for any period of time after termination of the partnership, employment, or professional relationship, is to be void and unenforceable with respect to the restriction. Nothing in the bill is to be construed to render void or unenforceable: (1) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or more physicians to join any other hospital system or group practice comprising 30 or more physicians within a given geographic area; (2) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or fewer physicians to join any other hospital system or group practice comprising 30 or fewer physicians within a given geographic area; (3) a restrictive covenant that prohibits a physician from leaving a federally qualified health center to practice medicine within a five mile radius of federally qualified health center for a period of time that is no longer than four years; (4) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice when the hospital system or group practice provided the physician a unique incentive to join the hospital system or group practice, which incentive is expressly identified in the contract between the physician and the hospital system or group practice; or (5) any remaining provisions of the contract or agreement that do not establish a restriction on the right to practice medicine in a geographic area.
AI Summary
This bill generally makes void and unenforceable any contract or agreement that restricts a licensed physician's right to practice medicine in a specific geographic area after their employment or professional relationship ends, with several exceptions designed to protect certain types of practices and incentives. Specifically, it allows for restrictions when a physician leaves a hospital system or group practice of 30 or more physicians to join another similar large practice, or when leaving a smaller practice of 30 or fewer physicians to join another similarly sized practice. It also permits restrictions for physicians leaving a federally qualified health center, limiting practice within a five-mile radius for up to four years, and allows restrictions if the physician received a "unique incentive" to join, such as a signing bonus over $50,000 or the establishment of a new program or service, provided this incentive is clearly stated in the contract. Importantly, any other parts of the contract not related to geographic practice restrictions remain valid.
Committee Categories
Health and Social Services
Sponsors (2)
Last Action
Introduced, Referred to Assembly Health Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A1647 |
| BillText | https://pub.njleg.gov/Bills/2026/A2000/1647_I1.HTM |
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