Health care attorneys often prepare or review physician employment contracts containing covenants not to compete. It is striking how often physicians ignore or dismiss these covenants as being worthless or unenforceable; this attitude can lead to catastrophic results.

Since at least the early 18th century, the common law has recognized the enforceability of these covenants. In addition, the courts of virtually every state, including Pennsylvania, have consistently enforced these covenants against physicians, who ignore these covenants at considerable risk. The more reasoned approach is to carefully negotiate the language of these covenants, minimize them to the greatest extent possible, and attempt to secure a release from them upon terminating an employment contract which contains a covenant.

NEGOTIATING THE COVENANT

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