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Senate Amendment 4
S 164 - Session 125 (2023-2024)
State Health Facility Licensure Act
Senator Davis proposes the following amendment (SR-164.JG0020S):
Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:
SECTION X. Article 3, Chapter 7, Title 44 of the S.C. Code is amended by adding:
Section 44-7-266.(A) In order to be licensed by the department, a hospital is prohibited from including any clauses that restrict the right of a physician to practice after termination of the relationship in any contract or agreement which creates or establishes an employment or any other form of professional relationship with a physician; provided, however, that the hospital may require a physician who has worked for the hospital three years or less to repay all or a portion of the actual costs of the following: relocation expenses, a signing bonus or other renumeration to induce the physician to relocate or establish a health care practice in a specified geographic area, or recruiting, education or training expenses, if the specific items and value of each item the hospital seeks in repayment must be outlined within the agreement at the time of signing; provided further, however, that the hospital may not In any contract or agreement prevent a physician from complying with his ethical duties to the patient upon departure as set forth in regulations which shall be promulgated by the Board of Medical Examiners, and may be fined for each violation in an amount set forth in such regulations. The requirements of this section shall apply only to new contracts or renewals of contracts entered into on or after the effective date of this section.
(B) The prohibitions as to contract or agreements set forth in subparagraph (A) shall apply only to the clauses the restrict the right of a physician to practice after termination of the relationship, and shall not apply to any other clause, including, without limitation, those pertaining to the protection of medical trade secrets.
(C) In order to be licensed by the department, a hospital is prohibited from using economic criteria unrelated to quality of care or professional competency in determining an individual's qualifications for initial or continuing hospital medical staff membership or privileges.
SECTION X. Chapter 47, Title 40 of the S.C. Code is amended by adding:
Section 40-47-60.(A) In order to be licensed to practice medicine in this State, a physician is prohibited from offering or making a partnership, shareholders, operating, employment, or other similar type of agreement that restricts the right of a physician to practice after termination of the relationship or prevents another physician from complying with his ethical duties to the patient upon departure as set forth in regulations which shall be promulgated by the Board of Medical Examiners, and may be fined for each violation in an amount set forth in such regulations; provided, however, provided however nothing in this section prevents such agreements from containing the following:
(1) Physicians who are employees and have been employed three years or less may be required to repay all or a portion of the actual costs of the following: a loan, relocation expenses, a signing bonus or other renumeration to induce the physician to relocate or establish a health care practice in a specified geographic area, or recruiting, education or training expenses. To be enforceable, the specific items and value of each item that may be sought in repayment must be outlined within the agreement at the time of signing.
(2) Physicians who are partners or owners of a practice may be required to repay the practice upon his departure damages in an amount that are reasonably related to injury, if any, suffered by reason of such departure. To be enforceable, the specific monetary value of such anticipated damages or the formula by which such anticipated damages will be calculated must be outlined within the agreement at the time of signing and agreed upon as reasonably related to any injury that may occur.
(B) The requirements of this section shall apply to new contracts or renewals of contracts entered into on or after the effective date of this section.