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IU Health to eliminate non-compete clauses for all primary care physicians

A researcher wearing blue gloves picks up vials in a testing lab.
Provided by IU Health
IU Health's new employment agreements will be available in August and take effect in mid-December.

IU Health plans to eliminate non-compete clauses for all primary care physicians. The move comes a year after Indiana lawmakers banned non-competes from some physician contracts. Indiana’s non-compete law, SEA 7, applies to new physician contracts signed after July 2023.

IU Health’s new policy would apply to new and existing contracts with primary care physicians.

In a statement, IU Health said the change would help it bring equity and align all primary care employment agreements. The change does not affect other types of physicians.

READ MORE: Battles over doctor non-competes play out in Midwest courtrooms, statehouses as staff shortage looms

IU Health's new employment agreements will be available in August and take effect in mid-December.

A federal rule could ban non-compete clauses for most workers across the country.

The rule is set to take effect in September, but several business groups have filed a lawsuit to stop it.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.

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