PHYSICIAN PRACTICE GROUP –COVENANTS NOT TO COMPLETE

 The enforceability of covenants not to compete in physician practice group employment

agreements vary from state to state. These covenants continue to develop legal angst as courts

try to balance the protection of legitimate practice group interests against an individual

physician’s right to practice his or her profession in a continuing location.  There is also

the rights of patients to continue access to their preferred physicians to be considered

(although patient interests are rarely identified as specific elements in court decisions). 

The Montana Supreme Court, in Dr. James Mungus et al v. Great Falls Clinic LLP, 2009 MT 426

(MT, December 15, 2009) reversed a summary judgment granted in favor of the physicians seeking

a declaratory judgment that their covenants not to compete were unenforceable.