Indianapolis-based IU Health has shared plans to cut noncompete clauses from all contracts with practicing primary care providers, effective Dec. 15.
News of the cancelation comes after the Federal Trade Commission voted to ban noncompete agreements on April 23.
The Indiana General Assembly passed legislation during its 2023 session to ban noncompete clauses in contracts of new providers who practice primary care. While the law did not require the amendment of existing contracts, IU Health made the decision to extend the benefit to currently employed providers, according to a June 13 IU Health news release shared with Becker's.
"We believe removing noncompete clauses for this group of physicians will be a benefit and help foster an environment where our physicians can continue to provide exceptional care without barriers, ultimately improving health outcomes in our shared communities," Kevin Gebke, senior vice president of community medicine at IU Health, said in the release.
The change coincides with IU Health's launch of new employment agreements for its medical group, the IU Health Medical Group. The employment agreements that remove noncompete clauses should be available by Aug. 1.
"The organization will continue to monitor and evaluate this topic to understand its impact on IU Health’s mission to make Indiana one of the nation’s healthiest states," the release said.