Assessment on Physician Noncompete Covenants

H.B.3623 amends Section 15.50 of the Business and Commerce code to specify that it only pertains to covenants not to compete relating to the practice of medicine by an individual who has been certified as a physician by the Texas Medical Board. H.B. 3623 states that regulations pertaining to contracts between physicians not to compete apply to physician services only. This bill states that the requirements concerning such a covenant does not apply to a physician’s business ownership interest in a licensed hospital or licensed ambulatory surgical center. The bill’s effective date was September 1, 2009 and only applies to covenants signed into effect before or on this date.

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