Ind. Code § 25-22.5-5.5-1 Applicability of chapter to agreements entered into beginning July 1, 2020
Sec. 1. This chapter applies to physician noncompete agreements originally entered into on or after July 1, 2020.
As added by P.L.93-2020, SEC.8.
Ind. Code ch. 25-22.5-5.5
Ind. Code ch. 25-22.5-5.5
in effectInd. Code § 25-22.5-5.5-1.1 "Business entity"
Sec. 1.1. As used in section 1.4 of this chapter, "business entity" means a corporation, partnership, sole proprietorship, professional corporation, limited liability company, limited liability partnership, or any other company or organization authorized to do business in Indiana.
As added by P.L.207-2025, SEC.1.
Ind. Code § 25-22.5-5.5-1.2 "Hospital"
Sec. 1.2. As used in sections 1.4 and 2.3 of this chapter, "hospital" has the meaning set forth in IC 16-18-2-179(b).
As added by P.L.207-2025, SEC.2.
Ind. Code § 25-22.5-5.5-1.3 "Hospital system"
Sec. 1.3. As used in sections 1.4 and 2.3 of this chapter, "hospital system" means:
(1) a parent corporation of at least one (1) hospital and any entity affiliated with the parent corporation through ownership, governance, or membership; or
(2) a hospital and any entity affiliated with the hospital through ownership, governance, or membership.
As added by P.L.207-2025, SEC.3.
Ind. Code § 25-22.5-5.5-1.4 "Noncompete agreement"
Sec. 1.4. (a) As used in section 2.3 of this chapter, "noncompete agreement" means a contract, or any part of a contract, to which a physician is a party that has the purpose or effect of restricting or penalizing a physician's ability to engage in the practice of medicine in any geographic area, for any period of time, after the physician's employment relationship with a hospital, a parent company of a hospital, an affiliated manager of a hospital, or a hospital system has ended. The term includes any provision that does the following:
(1) Prohibits the physician from engaging in the practice of medicine with a new employer.
(2) Imposes financial penalties or repayment obligations, or requires reimbursement of bonuses, training expenses, or similar payments that:
(A) apply to a physician that has been employed by:
(i) a hospital;
(ii) a parent company of a hospital;
(iii) an affiliated manager of a hospital; or
(iv) a hospital system;
for at least three (3) years; and
(B) are based solely or primarily on the physician's decision to continue engaging in the practice of medicine with a new employer.
(3) Requires the physician to:
(A) obtain employer consent; or
(B) submit to equitable relief;
to engage in the practice of medicine with a new employer, regardless of geographic area or specialty.
(4) Imposes indirect restrictions that have the effect of limiting or deterring the physician's practice of medicine with a new employer.
(b) The term does not include the following:
(1) A nondisclosure agreement that protects confidential business information or trade secrets.
(2) A nonsolicitation agreement that prohibits solicitation of current employees for a period not exceeding one (1) year after the physician's employment ends. However, the nonsolicitation agreement may not restrict:
(A) patient interactions;
(B) patient referrals;
(C) clinical collaboration; or
(D) the physician's professional relationships.
(3) An agreement made in connection with the bona fide sale of a business entity when the physician owns more than fifty percent (50%) of the business entity at the time of sale.
As added by P.L.207-2025, SEC.4.
Ind. Code § 25-22.5-5.5-1.5 "Primary care physician"
Sec. 1.5. As used in this chapter, "primary care physician" refers to a physician practicing in one (1) or more of the following:
(1) Family medicine.
(2) General pediatric medicine.
(3) Internal medicine.
As added by P.L.165-2023, SEC.1.
Ind. Code § 25-22.5-5.5-1.6 "Originally entered into"
Sec. 1.6. (a) As used in section 2.3 of this chapter, "originally entered into" refers to the date on which an agreement is entered into for the first time.
(b) The term does not refer to the date of:
(1) an amendment to an existing agreement; or
(2) renewal of an existing agreement.
As added by P.L.207-2025, SEC.5.
Ind. Code § 25-22.5-5.5-1.7 "Practice of medicine"
Sec. 1.7. (a) As used in section 1.4 of this chapter, "practice of medicine" has the meaning set forth in IC 25-22.5-1-1.1(a)(1) and IC 25-22.5-1-1.1(a)(2).
(b) The term does not include activities that:
(1) are solely and exclusively executive or managerial; and
(2) do not involve direct patient care.
As added by P.L.207-2025, SEC.6.
Ind. Code § 25-22.5-5.5-2 Requirements of physician noncompete agreements to be enforceable
Sec. 2. (a) Subject to subsection (b), to be enforceable, a physician noncompete agreement must include all of the following provisions:
(1) A provision that requires the employer of the physician to provide the physician with a copy of any notice that:
(A) concerns the physician's departure from the employer; and
(B) was sent to any patient seen or treated by the physician during the two (2) year period preceding the termination of the physician's employment or the expiration of the physician's contract. Provided, however, the patient names and contact information be redacted from the copy of the notice provided from the employer of the physician to the physician.
(2) A provision that requires the physician's employer to, in good faith, provide the physician's last known or current contact and location information to a patient who:
(A) requests updated contact and location information for the physician; and
(B) was seen or treated by the physician during the two (2) year period preceding the termination of the physician's employment or the expiration of the physician's contract.
(3) A provision that provides the physician with:
(A) access to; or
(B) copies of;
any medical record associated with a patient described in subdivision (1) or (2) upon receipt of the patient's consent.
(4) A provision that provides the physician whose employment has terminated or whose contract has expired with the option to purchase a complete and final release from the terms of the enforceable physician noncompete agreement at a reasonable price. However, in the event the physician elects not to exercise the purchase option, then the option to purchase provision may not be used in any manner to restrict, bar, or otherwise limit the employer's equitable remedies, including the employer's enforcement of the physician noncompete agreement.
(5) A provision that prohibits the providing of patient medical records to a requesting physician in a format that materially differs from the format used to create or store the medical record during the routine or ordinary course of business, unless a different format is mutually agreed upon by the parties. Paper or portable document format copies of the medical records satisfy the formatting provisions of this chapter.
(b) Beginning July 1, 2023, a physician noncompete agreement is not enforceable if any of the following circumstances occur:
(1) The employer terminates the physician's employment without cause.
(2) The physician terminates the physician's employment for cause.
(3) The physician's employment contract has expired and the physician and employer have fulfilled the obligations of the contract.
As added by P.L.93-2020, SEC.8. Amended by P.L.165-2023, SEC.2.
Ind. Code § 25-22.5-5.5-2.3 Prohibition on physician noncompete agreements with hospital, parent company, affiliated manager, or hospital system
Sec. 2.3. (a) This section does not apply to a noncompete agreement originally entered into before July 1, 2025.
(b) Notwithstanding any other law, a physician and:
(1) a hospital;
(2) a parent company of a hospital;
(3) an affiliated manager of a hospital; or
(4) a hospital system;
may not enter into a noncompete agreement on or after July 1, 2025.
(c) Any agreement in violation of this section is void and unenforceable.
As added by P.L.207-2025, SEC.7.
Ind. Code § 25-22.5-5.5-2.5 Prohibition on primary care physician noncompete agreements
Sec. 2.5. (a) This section does not apply to a physician noncompete agreement originally entered into before July 1, 2023.
(b) Notwithstanding any other law, a primary care physician and an employer may not enter into a noncompete agreement.
As added by P.L.165-2023, SEC.3.
Ind. Code § 25-22.5-5.5-2.6 Negotiation of purchase price for release from noncompete agreement; mediation
Sec. 2.6. (a) This section does not apply to a physician noncompete agreement originally entered into before July 1, 2023.
(b) If a physician elects to exercise the option to purchase a release from a noncompete agreement under section 2(a)(4) of this chapter, the employer shall negotiate in good faith with the physician to determine a reasonable purchase price.
(c) If:
(1) a physician notifies the employer of the physician's election to exercise the option to purchase a release from the noncompete agreement under section 2(a)(4) of this chapter; and
(2) the physician and the employer cannot agree on a reasonable purchase price;
the physician or the employer may serve a notice of intent to pursue mediation.
(d) A party shall serve a notice of intent to pursue mediation under subsection (c) on the other party not later than thirty-five (35) days after the physician notifies the employer under subsection (c)(1).
(e) The parties shall mutually select a mediator to conduct a mediation under this section.
(f) Unless the parties agree otherwise, the mediation must take place in the city within Indiana that:
(1) is closest to the physician's primary place of employment during the term of the physician's contract with the employer; and
(2) has a population of more than fifty thousand (50,000).
(g) The mediation must conclude not later than forty-five (45) days after the date that the notice of intent to pursue mediation was served under subsection (c).
(h) Unless the parties agree otherwise, the cost of the mediator and any other direct costs of the mediation must be equally divided between the parties engaged in the mediation. All other costs must be paid by the party incurring them.
As added by P.L.165-2023, SEC.4.
Ind. Code § 25-22.5-5.5-3 Reasonable fee for copying or transferring patient medical records
Sec. 3. A person or entity required to create, copy, or transfer a patient medical record for a reason specified in this chapter may charge a reasonable fee for the service as permitted under applicable state or federal law.
As added by P.L.93-2020, SEC.8.
Ind. Code § 25-22.5-5.5-4 Construction of chapter
Sec. 4. Nothing in this chapter shall be construed to prohibit, limit, impair, or abrogate:
(1) the ability of the parties to negotiate any other term not specified under this chapter; or
(2) any other right, remedy, or relief permitted by law or in equity.
As added by P.L.93-2020, SEC.8.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/25Fetched: 10/17/2026