📍 Health Law Shakeups: Texas Shrinks Noncompetes, SCOTUS Saves Screenings 💉, CMS Tightens the Belt 🧾

Texas Shrinks Healthcare Noncompetes to Five Miles 📍🗺️

Texas has passed SB 1318, a law restricting healthcare non-compete agreements by capping them at one year and a five-mile radius from the provider’s primary practice location.

Key Points

• Applies only to contracts entered into or renewed on or after September 1, 2025; existing agreements remain under prior law

• SB 1318 caps non-compete buyouts at one year’s salary or wages.

• Restrictions apply only to agreements entered into or renewed after September 1, 2025.

• The law limits non-competes to one year and a 5-mile radius from the primary practice site.

• New coverage includes dentists, nurses, and physician assistants for the first time.

Why It Matters

This sharpens the competitive landscape for healthcare employers in Texas, especially in urban markets where a five-mile radius means a provider could easily reestablish nearby. By adding nurses, dentists, and physician assistants to the list, the law signals a broader move toward provider mobility that may influence contract structuring, retention strategies, and deal valuations.

Takeaway

Healthcare organizations should proactively assess and revise contract templates to ensure compliance before the September 1, 2025 effective date, especially where evergreen clauses might trigger renewals subject to the new restrictions.