Restrictive Covenants in Physician Contracts: An American Society of Colon and Rectal Surgeons' Survey

BACKGROUND: A restrictive covenant (RC) may be a cause for concern among any physician entering into a contractual agreement. OBJECTIVE: This survey of graduates of colorectal surgery residency training programs aimed to determine whether this was an important issue among the members of this group. DESIGN: An electronic survey generated by the Young Surgeons' Committee of the American Society of Colon and Rectal Surgeons (ASCRS) regarding employment contracts was sent to all graduates of colorectal surgery residency training programs from the preceding 10-year period. The survey included 5 questions (including an open-ended question for those who experienced an adverse effect when a RC was enforced), followed by queries designed to generate demographic data. This was an anonymous survey with an option to enter the name of the respondent. RESULTS: There were a total of 157 responses to the survey of 630 sent (25%). Of the 132 respondents to the survey who had signed a contract, 67respondents (53%) had signed a contract that contained a RC, and 24 of these 67 respondents (35%) subsequently changed employment. The RC was enforced for 15 of these 24 respondents (63%) resulting in an adverse effect for 8 of the 15 (53%). The age range of those adversely effected was 32 to 41 years (mean, 36.3 y), all but 1 had been in private practice (86%) from 1 to 6 years (mean, 2.9 y). Most were men (71%) and all were married. CONCLUSIONS: The majority of survey respondents signed an employment agreement that contained a RC. Overall, 35% of the respondents subsequently changed employment and the RC was enforced in most cases (63%), often with an adverse effect on career and life (53%). ASCRS members should consider the potentially devastating consequences of signing a contract that contains a RC, especially if they would be averse to changing geographic location should they face a change in employment.