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SB 673

An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in fiscal supplements to statutory programs, establishing a tracking system for publicly financed housing.

2025-2026 Regular Session Introduced by Maria Collett and 12 co-sponsors

SB 673 shields clinicians who report patient-safety violations, extends consumer protection to nonclinical health care, and bars noncompetes for hospital clinicians.

Referred to Urban Affairs & Housing
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Bill Summary · SB 673

SB 673 — "Protect Physicians Voices / Freedom of Movement"

Status: Introduced Feb 21, 2025; passed first reading (NC Senate). Subject areas: employment, health care, contracts, consumer protection, whistleblowers, medical staff governance.

Purpose / Intent

SB 673 is designed to (1) make non‑clinical conduct involving health care providers subject to consumer protection law, (2) create statutory whistleblower protections for certain health care professionals who report patient‑safety or medical‑staff‑bylaw violations, and (3) limit use of nondisclosure agreements (NDAs) and non‑compete clauses that could impede reporting, professional mobility, or patient access to practice information.

Key provisions

  1. Limit learned‑profession exception to consumer protection law (Part I)

    • Amends G.S. 75‑1.1 so the “learned profession” exemption applies to health care providers only for acts/omissions directly related to provision of clinical care that are the subject of litigation under Article 1B of Chapter 90.
    • Effect: non‑clinical services or business practices involving health care providers may be actionable under state consumer protection statutes.

  2. Whistleblower protection for health care professionals (Part II)

    • Adds G.S. § 95‑28.1B. Definitions: “health care professional” = licensed physician, physician assistant, advanced practice registered nurse (APRN), or registered nurse (RN). “Hospital” and “medical staff bylaws” are defined.
    • Prohibits adverse actions (e.g., loss of privileges, termination, demotion, pay reduction, hostile work environment) by employers, stakeholders, or others against a health care professional for reporting violations of medical staff bylaws or making comments concerning patient care to protect the public.
    • Incorporates the new section into existing whistleblower/retaliation protections (amends G.S. 95‑241).
    • Effective on enactment and applies to employers, employees, and prospective employees on/after that date.

  3. Restrictions on NDAs and non‑competes; remedies (Part III)

    • Adds Article 52 to Chapter 66:
      • NDAs with health care professionals must explicitly state they do not bar reporting safety, ethical, or illegal conduct; cannot require a professional to waive reporting to licensing/accrediting/regulatory bodies.
      • Employment contracts for hospital‑employed health care professionals may not contain a non‑compete clause.
      • Policies/agreements may not prohibit providing "new practice information" to patients on request.
      • Violating NDAs/non‑competes are void and unenforceable; prevailing professionals may recover damages plus reasonable attorneys’ fees and costs.
    • Applies to contracts entered into, modified, or renewed on/after enactment.

  4. Rulemaking and effective date (Part IV)

    • North Carolina Board of Medicine authorized to adopt rules to implement Parts II and III.
    • Unless otherwise stated, the act is effective when it becomes law.

Who is affected

  • Health care professionals (physicians, PAs, APRNs, RNs) working for hospitals and hospital‑owned practices.
  • Hospitals, hospital administration, medical staff, and third‑party stakeholders (including owners/providers of non‑clinical services).
  • Patients (greater access to information and potentially additional legal remedies).
  • Employers and contract drafters (must revise NDAs, non‑competes, policies, and bylaws).

Potential impacts

  • Increases legal exposure for hospitals/administrators for nonclinical misconduct or contract provisions that limit reporting or mobility.
  • Strengthens protections for clinicians who raise safety concerns or complain about bylaw violations, potentially encouraging reporting of safety/ethics issues.
  • Removes non‑compete restraints for hospital‑employed clinicians, facilitating professional mobility and new practice formation.
  • Could prompt revisions to contracts, bylaws, and training; possible litigation to interpret scope (e.g., what constitutes “nonclinical” conduct).

Procedural / timeline notes

  • Introduced Feb 21, 2025; passed first reading. Effective date: when the act becomes law.
  • Part II applies to actions on/after enactment; Part III applies to contracts entered into, modified, or renewed on/after enactment.
  • NC Board of Medicine may adopt implementing rules.

Compiled from official sources — confirm details with the bill’s official record.

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