Question
You are a Chief Administrative Officer at [fictional] INC hospital on the west side of El Paso, Texas. The hospital's Chief Executive Officer (CEO) is
You are a Chief Administrative Officer at [fictional] INC hospital on the west side of El Paso, Texas. The hospital's Chief Executive Officer (CEO) is concerned that the hospital is having trouble recruiting good physicians. She suspects that it is due to the non-compete clause being too broad and not addressing "medically underserved areas." INC's CEO would like you to write the completely new non-compete clause and has not provided the old clause to us because she wants us to "start fresh." She has informed me, though, that the current non-compete clause prohibits former INC physicians from practicing within a 30-mile radius of INC for one year after leaving INC.
Instructions:
- Draft a non-compete clause for the hospital's physicians' employment contract. Make certain that it complies with Texas law but protects the hospital's business. Assume that many areas within a 30-mile radius of the hospital are considered "medically underserved."
- Also draft a confidentiality clause that ensures the confidentiality of information obtained by former employees while working at INC is not used or shared.
Resources for the non-compete clause:
- Practical Tips for Drafting Contracts and Avoiding Ethical Issues, 46-FALL Tex. J. Bus. L. 89
- Criteria for Enforceability of Covenants Not to Compete, TX BUS & COM 15.50
- Medically Underserved Areas and Populations (MUA/Ps), 2016. Retrieved from https://bhw.hrsa.gov/shortage-designation/muap
- Medically Underserved Areas Map, 2008. Retrieved from https://cdn.ymaws.com/www.texasnp.org/resource/resmgr/Advocacy/Tx%20map%20of%20MUAs.pdf
- Nacogdoches Heart Clinic, P.A. v. Pokala, 2013 WL 451810 (type the citation into the Westlaw search box)
- Alan Silberberg, M.D. v. Robert P. Willis, M.D., P.A., 2014 WL 6772539 (type the citation into the Westlaw search box)
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