For decades, non-compete agreements were the default tool for healthcare practices looking to protect their patient base and business investments. That era is officially over in Maryland. Following the enactment of House Bill 1388, which fully took effect in July 2025, medical groups across the state have spent the last year navigating a radically altered employment landscape. With practitioner mobility now heavily protected by law, practices are being forced to rethink how they safeguard their commercial interests when a provider decides to leave.

The core of Maryland’s new regulatory framework hinges on a strict income threshold. The state has completely voided non-compete agreements for licensed healthcare professionals who provide direct patient care and earn $350,000 or less in total annual compensation. For these providers, employment contracts can no longer include any language that restricts them from joining a competitor or opening their own practice nearby. The restrictions ease slightly for high earners, but they are still severe. If a provider earns more than $350,000 annually, a practice can only enforce a non-compete if it lasts no longer than one year and restricts the provider to a geographic radius of no more than 10 miles from their primary practice location.

Beyond the restrictions on restrictive covenants, the law also introduced a new operational mandate that has caught many practices off guard. If a patient asks about a departing high-earning provider, the employer is legally obligated to disclose the new location where that practitioner will be practicing. This transparency requirement makes it easier than ever for patients to follow their preferred clinicians, creating a genuine patient retention challenge for the original practice.

Despite these sweeping changes, healthcare employers are not left entirely without defenses, as the statute explicitly allows practices to enforce other types of restrictive agreements. Rather than relying on broad non-competes, forward thinking practices are now heavily leaning on strict non-solicitation clauses and robust confidentiality agreements. A well drafted non-solicitation clause can prevent a departing physician from actively poaching staff or directly contacting patients to encourage them to switch practices. Further, confidentiality provisions remain a highly effective way to protect proprietary business information, including internal patient lists, vendor contracts, and specialized operational protocols.

The transition away from traditional non-competes requires a proactive legal strategy. Relying on outdated contract templates can leave a practice exposed and completely unprotected when a key provider departs. Employers must audit their current employment agreements, update their onboarding documents, and establish clear internal procedures for handling patient inquiries when a provider resigns.

At MDRXLaw, we help healthcare employers adapt to these shifting regulatory realities. If you need to update your contracts or implement compliant workplace strategies in Maryland, please feel free to contact us at 212-668-0200 or email us at info@mdrxlaw.com.