Eliminate Non-Compete Agreements in Physician Contracts

South Carolina took a major step toward patient-centered healthcare with the recent repeal of its outdated Certificate of Need (CON) laws. That reform opened the door for more choice, access, and affordability in our state’s healthcare system.

But if we want those gains to last–and grow–we must now address another outdated barrier to competition: non-compete agreements in physician contracts.

These contractual clauses, used by corporate healthcare, prevent physicians from practicing within a certain geographic area after leaving an employer. The result? South Carolina patients lose access to trusted doctors, independent practices are stifled, and healthcare costs continue to climb- hurting small businesses and consumers alike.

Why This Affects Every South Carolinian

For policymakers and employers across the Palmetto State, the connection is clear: when competition is suppressed, prices rise and quality suffers. You see this in your business’s health plan premiums. You see it when employees struggle to get timely appointments. And you see it when local, independent practices disappear—replaced by high-cost, low-transparency mega-systems.

The use of non-compete agreements only makes this worse. They reduce the number of available providers in your region, force doctors out of the market altogether, and make it nearly impossible for new practices to open in your community. It’s a rigged system that ultimately limits your choices and drives up costs.

Repealing CON Was Step One. This Is Step Two.

When South Carolina repealed its CON laws, it sent a clear message: we believe in the power of competition to drive down costs and increase access.

But CON repeal alone isn’t enough. Without action on non-competes, we risk allowing the same large systems that benefited from CON to retain control through the back door—by locking in doctors and locking out patients.

Banning non-compete agreements would give CON repeal real teeth. It would empower physicians to start independent practices, create jobs, offer more affordable care, and serve rural and underserved areas. It would embolden entrepreneurs to reimagine what healthcare can look like in the Palmetto State.

The Economic Argument: Free the Market, Lower the Cost

Some opponents claim eliminating non-competes would disrupt the system. But that argument doesn’t hold up—especially not for small and medium-sized employers footing the bill for group health insurance.

Independent physician practices are often more cost-effective and more responsive to patient needs than hospital-employed doctors. But non-competes make it hard for those practices to start or survive. They limit the provider pool, reduce local care options, and ultimately shift the cost burden to businesses and families.

If you’re a business owner, you’re already paying the price of limited competition. You’re watching premiums climb and provider options shrink. Fixing that starts with freeing up the people who deliver the care.

This Is a Moral Issue, Too

Yes, this is about economics. But it’s also about ethics.

Patients deserve the freedom to follow their doctor. Doctors deserve the freedom to serve their communities. And no one should be forced to leave their town—-or their patients—-just to stay in practice.

Let’s also acknowledge a glaring double standard: while system lawyers argue that non-competes are “essential” in medicine, those same lawyers are protected by their own industry’s ban on such agreements. The legal profession recognizes that non-competes stifle individual opportunity and public access. Medicine should do the same.

A Clarion Call to Lawmakers and Thought Leaders

For the 2025-26 session, South Carolina lawmakers introduced S.46, which would ban non-compete clauses in physician contracts. It’s a bold, necessary next step in our effort to build a healthcare system rooted in access, affordability, and freedom.  When the General Assembly reconvenes in January, passing S.46 must be a priority.

For policymakers who championed the repeal of CON, this is a chance to complete the job. For employers who want more value and choice in healthcare, this is your fight, too.

Let’s double down on South Carolina’s promise. Let’s make our state a place where physicians can practice freely, patients can choose confidently, and small businesses can thrive without being crushed by unnecessary healthcare costs.

Competition works. Freedom works. It’s time to make both the foundation of our healthcare system.