What defines a "reasonable" distance/time for a physician non-compete in this area?
Situation: Naturopathic physician (ND) (board certified) working with private family of investors (non-professional) who are investing capital in a new private practice in their town.
Note* There are no other providers with my training or skill set within a radius of 50-65+ miles. (At 50 miles there is an outreach (PT) doctor available only.
Background: Draft proposal on the table from their attorney currently includes language that limits "during the term of the employee's employment with the company, and for a period of 1 year following the termination of employment for any reason, employee will not directly or indirectly, alone or as a partner, member, shareholder, or employee of any other business":
a: engage in any activity intended in any way to solicit or take away the Company's patients, including, but not limited to naturopathic. medical services or products to any individual, company or entity doing business with the Company or to any person within a 50 mile radius in any geographical area in which the Company, at the time of the termination of the employee's employment with the company, was engaged in more than an insignificant volume of business, including, but not limited to the Company location;
b: call upon, solicit, contact or serve any of the then-existing clients, patients, vendors, or suppliers, of the Company, any clients, patients, vendors, or suppliers that have had a relationship with the Company during the preceding 12 months, or any potential clients, patients, vendors, or suppliers that were solicited by the company during the preceding 12 months; or
c:disrupt, damage, impair, or interfere with the business of the company whether by way of interfering with or disrupting the company's relationship with employees, clients, patients, agents, representatives, vendors, or suppliers.
Assessment:Clearly, I am NOT accepting this language of 50 miles and 1 year -- and especially not with regard to the use of vendors in a small rural area/ with regard to their "potential" patients.
The question I have after doing extensive research including the AMA's position on non-compete for physicians and the American Health Lawyer's "Restrictive Covenants in Physician Employment Relationships" as well as speaking with my attorney and business consultant is what is a "reasonable" distance?/Time? -- when the company is owned by non-professionals in particular.
Here are the area stats:
Population: 18,016 (2010)
Nearest city with pop. 50,000+: Rochester, MN (51.6 miles , pop. 85,806).
Nearest city with pop. 200,000+: Minneapolis, MN (91.0 miles , pop. 382,618).
Nearest city with pop. 1,000,000+: Chicago, IL (314.8 miles , pop. 2,896,016).
Nearest cities: Hayward, MN (2.5 miles ), Manchester, MN (2.6 miles) , Twin Lakes, MN (2.6 miles) , Glenville, MN (2.7 miles ), Clarks Grove, MN (2.8 miles ), Conger, MN (2.9 miles) , Alden, MN (3.2 miles ), Hollandale, MN (3.3 miles ).
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