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Bill

H 4767

Physician Noncompete Contract Prohibition

2025-2026 Regular Session Introduced by Heather Bauer and 27 co-sponsors

South Carolina bill prohibits physician non-compete clauses in employment contracts to enhance physician mobility and potentially increase healthcare competition and access.

Committee report: Favorable Labor, Commerce and Industry
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Bill Summary · H 4767

Legislative bill overview

H 4767 prohibits physicians in South Carolina from being bound by non-compete clauses in employment contracts. The bill restricts an employer's ability to prevent doctors from practicing medicine in a geographic area or timeframe after leaving their job, though it likely allows other restrictive covenants like non-solicitation agreements.

Why is this important

Non-compete agreements can limit patients' access to care by preventing experienced physicians from practicing in their communities and can reduce physician bargaining power in employment negotiations. This bill directly affects healthcare workforce mobility and competition in the medical marketplace, potentially influencing both physician recruitment/retention and healthcare accessibility in rural and underserved areas.

Potential points of contention

  • Employer concerns: Medical practices and hospitals argue non-competes protect their training investments, patient relationships, and business stability when physicians leave to become competitors
  • Scope ambiguity: The bill's language regarding what restrictions remain enforceable (non-solicitation, confidentiality clauses) and how broadly "physician" is defined could create interpretation disputes
  • Market effects: Unclear whether eliminating non-competes increases competition and lowers costs or destabilizes smaller practices through rapid physician departures to competitors

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

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