While Maryland's 2024 legislative session ended months ago, the real impact of our advocacy work is now here. This past July, a landmark law championed by the MDAFP and other healthcare advocates officially went into effect. We take a moment to reflect on the successful passage of HB-1388, which brings significant non-compete protections for healthcare professionals.
The fight for fair competition
Previously, the enforceability of non-compete clauses was left entirely to the courts. The passage of HB 1388, in its first year of consideration, was a decisive win for licensed health occupations across the state. Introduced by Delegate/Dr. Terri Hill, the bill aimed to prohibit non-compete clauses in health care employment agreements
How the legislation evolved:
- Initial setbacks: While the House of Delegates passed the bill overwhelmingly, they removed a retroactivity clause due to constitutional concerns regarding the impairment of existing contracts.
- Continued pushback: In the Senate, MedStar and the MD Hospital Association introduced amendments seeking to weaken the bill. They proposed restricting the ban only to those earning below $300,000 and placing a one-year, 10-mile radius limit on higher earners.
- Key modifications secured: MDAFP worked with Senate Finance Committee Chair Pam Beidle to modify these amendments, successfully increasing the salary threshold for full non-compete protection to $350,000. Our modifications also ensure the 10-mile radius is measured from the primary place of employment and expanded a related study to include all types of physician practice acquisitions.
What this means for physicians:
The impact of this legislation cannot be overstated.
- For those earning under $350,000: Non-compete clauses are no longer applicable.
- For those earning above $350,000: Protections are now in place against overly broad terms, such as clauses measuring distance from any hospital facility in the state, and against clauses lasting longer than one year.
This is a monumental step forward, and a solid win for family physicians and the entire health care community.
