Non-compete clauses cannot prescribe a doctor’s practice

Issue - June - 2026, Posted On: 01 June 2026

A dispute between a hospital and a consulting surgeon brought into focus a recurring tension in modern healthcare — the attempt to structure medical practice within rigid contractual frameworks.

The doctor had entered into a professional agreement that included restrictive covenants: a non-compete clause preventing association with nearby hospitals for three years, and a notice clause requiring three months’ prior intimation before exit. After serving for over two years, the doctor resigned and subsequently joined another hospital. The original hospital alleged breach of contract, invoked the non-compete clause, and sought substantial damages while initiating arbitration proceedings.

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