IC 25-22.5-5.5-1.4: "Noncompete agreement"

Sec. 1.4. (a) As used in section 2.3 of this chapter, "noncompete agreement" means a contract, or any part of a contract, to which a physician is a party that has the purpose or effect of restricting or penalizing a physician's ability to engage in the practice of medicine in any geographic area, for any period of time, after the physician's employment relationship with a hospital, a parent company of a hospital, an affiliated manager of a hospital, or a hospital system has ended. The term includes any provision that does the following:

(1) Prohibits the physician from engaging in the practice of medicine with a new employer.

(2) Imposes financial penalties or repayment obligations, or requires reimbursement of bonuses, training expenses, or similar payments that:

(A) apply to a physician that has been employed by:

(i) a hospital;

(ii) a parent company of a hospital;

(iii) an affiliated manager of a hospital; or

(iv) a hospital system;

for at least three (3) years; and

(B) are based solely or primarily on the physician's decision to continue engaging in the practice of medicine with a new employer.

(3) Requires the physician to:

(A) obtain employer consent; or

(B) submit to equitable relief;

to engage in the practice of medicine with a new employer, regardless of geographic area or specialty.

(4) Imposes indirect restrictions that have the effect of limiting or deterring the physician's practice of medicine with a new employer.

(b) The term does not include the following:

(1) A nondisclosure agreement that protects confidential business information or trade secrets.

(2) A nonsolicitation agreement that prohibits solicitation of current employees for a period not exceeding one (1) year after the physician's employment ends. However, the nonsolicitation agreement may not restrict:

(A) patient interactions;

(B) patient referrals;

(C) clinical collaboration; or

(D) the physician's professional relationships.

(3) An agreement made in connection with the bona fide sale of a business entity when the physician owns more than fifty percent (50%) of the business entity at the time of sale.