UVa adds non-compete clause
The University of Virginia Medical Center is adding “non-competition” clauses to the employment agreements of its 800 clinical faculty members — a move that one UVa physician criticized as bad for health care in the Charlottesville region.
Under the new policy, clinical faculty involved in primary care — such as pediatrics or family medicine — are prohibited from practicing medicine within a 15-mile radius for one year after leaving employment with UVa.
Clinical faculty who practice in more specialized fields cannot work within 50 miles for a year after leaving UVa.
Peter Jump, a UVa hospital spokesman, said the new policy aims to stop physicians from leaving UVa to set up a nearby practice or to take a job with a competing hospital.
“Physicians come here, we set up their practice, they see our patients and then they leave and many of the patients go with them,” Jump said. “We invest a lot of money, time and effort helping you get your practice established, but then you leave and take your patients with you to the detriment of UVa.”
In 2005, UVa’s entire in-vitro fertilization clinic left the university and moved across town to Martha Jefferson Hospital. Such a move, Jump said, can deprive UVa’s medical students of valuable learning experiences.
UVa’s new policy is not unusual for teaching hospitals. Jump said the university polled 28 similar teaching hospitals and found that 26 had non-compete policies, one did not and one could not respond because it was forbidden by state law.
One physician who has worked at UVa for 20 years, who spoke on the condition of anonymity, said the hospital’s new policy will reduce health care competition and might lead to some physicians leaving the Charlottesville area for opportunities elsewhere.
“This could restrict access to good doctors,” the physician said. “It could drive doctors out of the community.”
Jump disagreed, saying UVa’s non-competition policy would not reduce competition for health care in the Charlottesville region, which is home to several hospitals and numerous independent medical practices.
“We don’t think it’s going to be detrimental to competition,” Jump said.
Hospitals are allowed to implement non-compete clauses so long as the policy is reasonable in its duration and geographic area, said Robert Mills of the American Medical Association.
“The courts have backed the notion that these restrictive covenants are OK so long as they are not overly broad,” Mills said.
Massachusetts, Delaware and Colorado, however, have all enacted statutes that invalidate physician non-compete clauses in those states.
Medical centers generally add non-compete policies to protect revenue, their patient base and their investment — such as recruiting costs, moving expenses and opportunity costs — in their employees.
It is unclear if Martha Jefferson Hospital has a similar policy. Hospital spokeswoman Jennifer McDaniel would not say, citing confidentiality rules.
“Contracts are confidential,” she said. “That’s between human resources and the employee.”
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“In 2005, UVa’s entire in-vitro fertilization clinic left the university and moved across town to Martha Jefferson Hospital.“
True. But, Jump fails to explain that UVa refused to build this group a needed facility for this major revenue generating service at UVa. REI is cash, UVa dropped the ball. MJH built them a new facility. Also, these faculty, on their own time, still teach at UVA! Did you know that? These people are dedicated to their patients, wanted the best REI facility for their patients and through all of this, still give back to UVA by teaching medical students, residents and fellows.
Only those that cannot compete need non-compete clauses in contracts.
If you want a great example of why the healthcare system fails in the US, just spend some time at UVA Medical Center. No business can operate in the way that the Medical Center operates and succeed, unless you have the good ol tax payer to support your total imcompetence. Without tax payer funding, UVA would be out of business today. Total lack of leadership, total lack of performance management, misaligned organizational goals and a ton of dead wood in positions of authority. But, the beat will go on because no one will say “the emperor has no clothes”.
Yes, that is a good point. Not sure if UVA is being more restrictive because they value specialists more highly, feel that they can justify the restrictions more highly, or what? I wouldnt confuse either of those fine hospitals with Duke. Moreover, I wonder why an unhappy Cardiologist worth their salt would seek to go to either of those places? Family?
Is’nt Culpeper in partnership with UVA? Would the non-compete apply?
Anyhow, non-compete clauses are for sissies. I can see restrictions on the transfer of intellectual property that UVA may have subsidized, but the investment in human capital is the cost of doing business. And, no one ‘owns’ patients (though I am acutely aware of the UVA attitude of owning all in its domain—well, you see, now disgrunted Cardiologiest have something in common with those who clean the bedpans and do not get paid a living wage—indentured servitude).
The crosstown business rivalry with MJH is commented upon by several respondents. No one has pointed out the absurdity of the 50 mile radius exclusion zone for specialists. This, for example, would restrict an unhappy Charlottesville-based UVa cardiologist from seeking a position at Augusta Health in Fishersville (ca. 30 miles) or Culpeper Hospital (ca. 40 miles). Why not go “whole hog” and try to exclude Johns Hopkins and Duke?
Exactly so, Foehammer. And as one with a one-time inside view to both UVA and MJH, I can tell you, it will not happen. There is an amazing amount of arrogance in play here, driven completely by ego. It is what scuttled efforts by MJH to work out cooperative strategic agreements between the two entitiess in the ‘80’s, a ruinous bidding war for acquiring local primary care practices in the 90’s, and now a toe to toe battel for the big money, from heart to head (cardiology, neurology).
In 1999-2000 MJH specifically targeted high margin specialty areas to move in on. Aggressive recruiting, physician support (aka coddling), a new campus… perhaps UVA, focused as it is on its research (not patient) focused reputation, did a General Motors. Now, the non-comptete action is an act of desperation—rather than address the issues, shoot from the lip, and carry a big stick.
Unenforcable? I think that is decidedly grey. I wonder how far UVA is willing to expose themselves to the legal costs, and the bad pub, in such a battle? They play hardball at UVA. They may go to the state legislature for relief. Who knows?
The winner in this, perhaps, has been the community, in a roundabout way. You have really good medical options for this size of a community, and MJH puts a heck of alot of pressure on UVA to be somewhat nicer to its patients (who otherwise, might as well be lab rats to these people).
It will take a wholesale house cleaning at the top echelon, though, before attitudes change, and these folks are gonna have to be carried out kickking and screaming.
Too bad, because inherently, the docs and nurses (and researchers) are compassionate, giving people who put their collective souls into their work. Suffice it to say, its the pinheads who rise to the administrative top at UVA—‘ya gotta work alongside ‘em (can’t work with ‘em) to know ‘em.
I think that an immediate impact will be that UVA finds it more difficult to attract new physicians who are clinicians first, less so researchers, and that the long run impact is that MJH emerge as a credible alternative not just as a primary and secondary care provider, but a specialty services provider of first choice.
Caring Tradition triumphs over Teaching and Research, if you force a choice.
Rather than try to penalize employees, they should be looking for the reasons these people want to leave.
This policy will stifle innovation and REDUCE the quality of medical care.
EXAMPLE. A top notch Doc HATES UVA policies because of whatever(pricing, manipulation, lack of resources, bad boss whatever) but won’t leave the area because he has roots and a family he loves dearly and does not want to yank everyone out of achool and such. So he goes to work everyday more and more discouraged trying to keep his chin up and stick it out until one day the weight is too heavy and heaven forbid he makes a mistake that cost someone their life or worse, they become a vegtable. Whos fault is it? His for loving his family and trying to make it work? The Hospital for being so greedy that they are afraid to let a free market stay free?
I hope that if this happens I am on the jury so that I can bankrupt the Hospital.
These employees are HUMAN BEINGS NOT CHATTEL.
It all depends upon the circumstances and language in the contract. From this Web site, there is NOT a blanket court decision barring enforcement of the no comptete contract. It is a contract ussually signed before the person begins working.
http://www.frithlawfirm.com/Articles/BusinessNonCompeteArticles/NonCompeteAgreementsforVirginiaDoctors/tabid/147/Default.aspx
Non-Compete clauses are unenforceable. You cannot compel someone to give up their right to employment or use of their skills.
From a patients stand point ask us why we choose to leave UVA and go across town or elsewhere. Yes, there are some good physicians/clinics but over all the customer service is horrendous. Try going through the clinics and expect to be seen within a week or two..it won’t happen. I for one am glad there are Docs who see this and offer us the option of keeping them as our provider and showing us they care and appreciate us elsewhere.
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