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Bill

HB 198

Revise laws that prohibit contracts that restrict practice of health care providers

2025 Regular Session Introduced by Jodee Etchart

Montana law revised to restrict healthcare employer contracts that prevent providers from practicing their profession elsewhere after employment ends.

Chapter Number Assigned
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Bill Summary · HB 198

Legislative bill overview

HB 198 revises Montana law to restrict or eliminate non-compete and non-practice agreements that prevent healthcare providers from working in their field after leaving an employer. The bill modifies existing prohibitions on restrictive covenants in healthcare employment contracts, potentially expanding what types of practice restrictions are illegal or unenforceable.

Why is this important

Healthcare provider mobility directly affects patient access to care, particularly in rural areas and underserved communities. Overly restrictive employment contracts can artificially limit where doctors, nurses, and other providers can practice, potentially creating healthcare deserts and reducing competition that could lower costs. This legislation impacts both the supply of healthcare services and employment rights for medical professionals.

Potential points of contention

  • Scope of restrictions: Disagreement over which types of practice limitations should be prohibited (non-competes, non-solicitation, geographic restrictions) and what timeframes or distances constitute unreasonable restraints
  • Employer concerns: Healthcare organizations may argue that some practice restrictions protect legitimate business interests, patient relationships, and investments in provider training
  • Implementation specificity: Uncertainty about how courts will interpret and enforce the revised language, creating potential legal disputes over borderline contract provisions

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

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