Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Physicians
August 21, 2019 04:29 PM

Judge declines to block Florida law limiting doc noncompete contracts

Harris Meyer
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    A federal judge Tuesday rejected a large cancer care company's motion to block a controversial new Florida state law limiting the use of physician noncompete agreements.

    U.S. District Judge Mark Walker nixed the request by 21st Century Oncology for a preliminary injunction barring enforcement of the law, which he compared to the campy 1950s horror movie classic "Creature from the Black Lagoon," filmed 15 miles from the Tallahassee courthouse.

    The law, signed by Republican Gov. Ron DeSantis in June, voids any noncompete agreements between specialist physicians and any entity that employs or contracts with all physicians of that specialty in a particular county. These restrictive covenants remain unenforceable for three years after the date on which a second entity starts offering the same specialty services in the county.

    The ruling is a setback for many provider organizations, including hospitals, that use noncompete agreements to lock in their physicians and protect their investments in their network. Rural hospitals in the state have said the law will hurt their ability to offer specialty services.

    21st Century Oncology is the largest provider of radiation oncology services in Florida, and is the only provider in Lee County, in the southwest part of the state. Until recently, the company employed all nine radiation oncologists in Lee County. But in the past year, five of those doctors severed their relationship and began practicing on their own, according to the judge's opinion.

    The company claimed the law violated its contracting, equal protection, and due process constitutional rights, and that it was written specifically to benefit five politically connected doctors who wanted out of their contracts—several of whom previously were founders or leaders in the company.

    But Walker wrote that the Republican-dominated Florida Legislature could plausibly have passed the bill out of concern that consolidation across the healthcare industry is negatively affecting access, costs and consumer choice.

    Lawmakers, he wrote, "could rationally have concluded one way to address these issues was by increasing competition, and that an acceptable way to make progress toward that result was to render void certain noncompete agreements which contributed to creating and maintaining county-level zones of exclusive market share."

    He acknowledged that the law impairs the company's employment contracts within the meaning of the Constitution's contracts clause, "but that the degree of impairment does not outweigh the significant, legitimate public purpose" of the law.

    Dr. Michael Katin, who helped co-found 21st Century and is one of the four physicians seeking to end the noncompete agreement, applauded the Tuesday ruling.

    "Medical specialists are often in short supply in Florida counties," he said in a written statement. "The court's decision allows Florida communities to keep these doctors and allows patients to continue receiving treatment from the specialty physicians of their choice."

    Benjamin Yormak, who represented two physicians in a separate noncompete case against 21st Century Oncology that settled in 2017, said noncompete agreements are widely used with physicians in Florida. The new state law, he added, makes it much easier for those in certain circumstances to get free of the covenant because they no longer have to prove it violates antitrust law, which is a high legal hurdle.

    "The Florida Legislature said that if one medical group controls a large market share, it's not right that patients can't have a meaningful choice of their physician," he said. "It's a great win for physicians and patients."

    Attorney for 21st Century Oncology did not return calls for comment by deadline.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    healthcare workers burnout
    Physicians left their jobs by the hundreds of thousands in 2021: report
    careallies patient care
    Physician assistant role sees record growth in 2021
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing