H1633B2959A05412 NAD:EJH 07/02/24 #90 A05412
AMENDMENTS TO HOUSE BILL NO. 1633
Sponsor: SENATOR BROOKS
Printer's No. 2959
Amend Bill, page 1, line 2, by inserting after "employers"
and providing for a study by the Health Care Cost Containment
Council
Amend Bill, page 2, lines 26 through 28, by striking out all
of said lines and inserting
"Health care practitioner." The following:
(1) A medical doctor as defined in section 2 of the act
of December 20, 1985 (P.L.457, No.112), known as the Medical
Practice Act of 1985.
(2) A doctor of osteopathy under the act of October 5,
1978 (P.L.1109, No.261), known as the Osteopathic Medical
Practice Act, or the Medical Practice Act of 1985.
(3) A certified registered nurse anesthetist as defined
in section 2(16) of the act of May 22, 1951 (P.L.317, No.69),
known as The Professional Nursing Law.
(4) A certified registered nurse practitioner as defined
in section 2(12) of The Professional Nursing Law.
(5) A physician assistant as defined in section 2 of
the Osteopathic Medical Practice Act.
Amend Bill, page 3, line 1, by striking out "and is designed
to impede" and inserting
which has the effect of impeding
Amend Bill, page 3, line 3, by striking out "PRACTICE" and
inserting
continue treating patients or accepting new patients, either
practicing
Amend Bill, page 3, line 12, by striking out "are" and
inserting
is
Amend Bill, page 3, lines 14 through 30; page 4, lines 1
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through 15; by striking out all of said lines on said pages and
inserting
(a) Applicability.--Except as provided under subsection (b),
a noncompete covenant entered into after the effective date of
this subsection is deemed contrary to the public policy and is
void and unenforceable by an employer.
(b) Exception.--An employer may enforce a noncompete
covenant if the length of the noncompete covenant is no more
than one year, provided that the health care practitioner was
not dismissed by the employer.
(c) Construction.--Nothing in this section shall be
construed to:
(1) Prohibit the enforcement of a contract provision
that allows an employer to recover reasonable expenses from a
health care practitioner, if the expenses are:
(i) Directly attributable to the health care
practitioner and accrued within the three years prior to
separation, unless separation is caused by dismissal of
the health care practitioner.
(ii) Related to relocation, training and
establishment of a patient base.
(iii) Amortized over a period of up to five years
from the date of separation by the health care
practitioner.
(2) (i) Except as provided under subparagraph (ii),
void or render a noncompete covenant entered into with a
health care practitioner with an interest in a business
entity unenforceable as a direct result of:
(A) the sale of an ownership interest or all or
substantially all of the assets of the business
entity;
(B) a transaction resulting in the sale,
transfer or other disposition of the control of the
business entity, including by merger or
consolidation. For purposes of this clause, the term
"control" shall mean the possession, directly or
indirectly, of the power to direct the management and
policies of a business entity, whether through the
ownership of voting securities, by contract or
otherwise; or
(C) the health care practitioner's receipt, by
purchase, grant, award, issuance or otherwise, of an
ownership interest in the business entity.
(ii) A preexisting noncompete covenant may be
rendered void and unenforceable if a health care
practitioner is not a party to the sale, transfer or
other disposition under subparagraph (i).
Amend Bill, page 4, lines 21 through 27, by striking out all
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of said lines and inserting
(1) The health care practitioner's departure.
(2) If the patient chooses to receive care from the
departed health care practitioner or another health care
practitioner, how the patient may transfer the patient's
health records to a health care practitioner other than with
the employer.
(3) That the patient may be assigned to a new health
care practitioner within the existing employer if the patient
chooses to continue receiving care from the employer.
Amend Bill, page 5, lines 1 and 2, by striking out
"physician, certified registered nurse practitioner or physician
assistant" and inserting
health care practitioner
Amend Bill, page 5, lines 4 through 12, by striking out all
of said lines and inserting
Section 6. Study by Health Care Cost Containment Council.
Within three years of the effective date of this section, the
Health Care Cost Containment Council, as authorized under 35
Pa.C.S. ยง 3309 (relating to special studies and reports), shall
perform a study on the effects of this act and shall report its
findings to the chairperson and minority chairperson of the
Health and Human Services Committee of the Senate and the
chairperson and minority chairperson of the Health Committee of
the House of Representatives.
Section 7. Effective date.
This act shall take effect January 1, 2025.
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