Weakened version of health care non-compete limitations becomes law

(The Center Square) — Among a flurry of bills signed into law recently, Pennsylvania has taken a step in reducing the barriers created by non-compete agreements in health care. But the law in effect is a watered-down version of what was proposed in the General Assembly.

“It’s a C+,” said Rep. Dan Frankel, D-Pittsburgh, who introduced House Bill 1633. “There’s a significant amendment that diluted the impact of the bill. But it clearly remains a step forward with more work to do.”

Passed by the House in May, the bill would have banned non-compete agreements for health care workers, removing restrictions on where and for whom doctors and nurses could work after leaving their jobs.

A few states already ban non-competes in health care, while others set income limits for their use. Pennsylvania is one of a dozen states with no restrictions.

The compromise, however, made the law “not quite as extensive as the original bill,” Frankel said. Restrictive covenants will remain in Pennsylvania, but for one year instead of two. Health care providers must also notify patients within 90 days if they have a relationship with the patient for at least two years.

“Clearly, not anything that I was particularly thrilled about — but progress nevertheless,” Frankel said.

The law also requires the Pennsylvania Health Care Cost Containment Council to study the impacts of restrictive covenants on health care and report it to the General Assembly within three years, which Frankel saw as laying the foundation for future reforms.

The General Assembly and governor worked together to also pass restrictions on pharmacy benefit managers and require more information from them in the name of transparency and lower prices.

Both efforts have seen significant support from Democrats and Republicans and may set the stage for other efforts.

“One thing we’re noticing as we move forward: This does cross party lines, we’re able to work together with Republicans to do this and, at least in these instances, bipartisanship seems to be working,” Frankel said.

Future issues may focus on expanding the work that nurse practitioners can do independently and letting qualified psychologists write prescriptions for patients. Rural health care has also grabbed legislative attention.

“Given what’s happening in our rural communities, access to providers is becoming more and more challenging; possible closures with providers not locating out there, particularly primary care and OB-GYNs — we need to find a way to make sure to preserve and expand access in rural communities,” Frankel said.