Sat. May 4th, 2024

I don’t know if this doctor read my first book on Direct Primary Care but I wish she would have paid attention to my thoughts on non-compete clauses. Maybe she got a different startup book that ignores the topic. Nonetheless, I’ll share some of my advice from the books with you here:

If you’re starting your practice while working for somebody else, which most of us are by this time, then the job of getting patients for your future DPC clinic is tough. Here is where you really want to look at your contract to see if you can actually go out like a little birdie and fly on your own. Why? Because hospitals don’t want you to be independent. They want to control you and therefore have no other choice other than to hurt you if you attempt to escape. It happened to me once and I was sued for it in the past. I went from one hospital to another hospital and I lost a hundred thousand dollar lawsuit because of a noncompete clause that had no end date. Luckily, I already had a deal with the new hospital that they would pay that money if I lost. It really doesn’t matter because I went from one frying pan to another frying pan by being employed by a bunch of administrative morons. Hence, that is why I am finally doing DPC. Going on your own, however, does not mean it’s any easier and you may not have a hundred thousand dollars laying around so you really want to make sure that you don’t have a noncomplete clause looming in your contract. If you are sure there isn’t a noncompete clause, it doesn’t guarantee you are in the clear. You still want to check your contract to see what you can or can’t do as you try to recruit patients for your next practice.

Let me reiterate: do not trust the hospital that employs you. I know this sounds negative but it’s better to be safe than to be sorry. Don’t make any mistakes. Play nice if you can but expect the worst. I hear stories all the time where hospitals are truly trying to make life terrible for docs who leave to jump into DPC. Why? Think about it. You are their worst nightmare. You are the light that shines on the darkness out there and exposes to others why it doesn’t have to be that way. And many of these administrators are the Lords of Darkness.

Got it? Good.

Now highlights from the story.

  • Divine Savior Healthcare Inc. requested a restraining order against a Portage doctor attempting to open her own practice
  • Dr. Amy Doherty worked at Divine Savior starting in June 2016 and left in December. She planned on opening a direct primary care doctor office in January when her former employer filed an injunction against her.
  • “I was surprised when that happened,” Doherty said. “I received a call from my lawyer saying Divine Savior has filed a civil lawsuit against me that included the temporary restraining order.”
  • The restraining order filed by Divine Savior Healthcare Inc. Jan. 21 asks that Doherty “shall be restrained from soliciting Divine Savior patients within thirty miles of Divine Savior Hospital.”
  • Information filed by Banaszak alleges Doherty was operating her own practice within the last 12 months of her employment at Divine Savior which is count one of the complaint, breach of contract-specific performance. The second count of the complaint is breach of contract-damages alleging Doherty has violated the non-compete clause in her contract.

I truly hope Dr. Doherty wins this case. I am not a lawyer and have no idea which way it will go. My personal history of being sued and losing over a non-compete clause (mine did not involve my DPC practice) is a bad omen for her. Also, NO ONE needs these legal costs when they are trying to open a practice.

Please make sure you read my book or at least what I mention above and don’t make the same mistake.

64500cookie-checkGetting Caught in a Non-Compete Clause
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By Douglas Farrago, MD

Douglas Farrago MD is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Douglas Farrago, MD received his Bachelor of Science from the University of Virginia in 1987, his Masters of Education degree in the area of Exercise Science from the University of Houston in 1990, and his Medical Degree from the University of Texas at Houston in 1994. His residency training occurred way up north at the Eastern Maine Medical Center in Bangor, Maine. In his final year, he was elected Chief Resident by his peers. Dr. Farrago has practiced family medicine for twenty-three years, first in Auburn, Maine and now in Forest, Virginia. He founded Forest Direct Primary Care in 2014, which quickly filled in 18 months. Dr. Farrago still blogs every day on his website Authenticmedicine.com and lectures worldwide about the present crisis in our healthcare system and the effect it has on the doctor-patient relationship. Dr. Farrago’s has written three books on direct primary care: The Official Guide to Starting Your Own Direct Primary Care Practice, The Direct Primary Care Doctor’s Daily Motivational Journal and Slowing the Churn in Direct Primary Care (While Also Keeping Your Sanity) are all best sellers in this genre. He is a leading expert in direct primary care model and lectures medical students, residents, and doctors on how to start their own DPC practice. He retired from clinical medicine in October, 2020.

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