South Carolina H 4767: Physician Noncompete Contract Prohibition

Bill Text

2025-2026 Bill 4767 Text of Previous Version (May. 05, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4767

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Committee Report

May 5, 2026

H. 4767

Introduced by Reps. Davis, Chumley, Sessions, 
Oremus, Bustos, Landing, White, Wooten, Gagnon, Lawson, Guffey, Beach, Long, 
Cox, Rutherford, McCravy, Bowers, Wickensimer, Willis, Haddon, Bauer, Rankin, 
Burns, Rose, Vaughan, Duncan, Robbins, Brewer and D. Mitchell 

S. Printed 5/5/26--S.

Read the first time March 26, 2026

________

The committee on Senate Labor, 
Commerce and Industry

To whom was referred a Bill (H. 4767) to amend 
the South Carolina Code of Laws by adding Chapter 9 to Title 41 so as to 
prohibit noncompete clauses in physician contracts, to protect patient freedom, 
etc., respectfully

Report:

That they have duly and carefully considered 
the same, and recommend that the same do pass:

THOMAS DAVIS for Committee.

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE of laws BY ADDING CHAPTER 
9 TO TITLE 41 SO AS TO PROHIBIT NONCOMPETE CLAUSES IN PHYSICIAN CONTRACTS, TO 
PROTECT PATIENT FREEDOM OF CHOICE, TO DEFINE IMPERMISSIBLE RESTRICTIONS ON 
PHYSICIAN PRACTICE, TO ALLOW CERTAIN RECOUPMENT OF EXPENSES AND PROTECTION OF 
LEGITIMATE BUSINESS INTERESTS, AND TO PROVIDE FOR APPLICABILITY.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "Physician Noncompete Contract Prohibition 
Act."

SECTION 2. Title 41 of the S.C. Code is amended by adding:

CHAPTER 9

Physician Noncompete Contract Prohibition

 Section 
41-9-110. Contracts with physicians containing noncompete clauses are 
considered interference with the establishment or maintenance of a patient's 
choice of physician and are against the public policy of the State of South 
Carolina.

 Section 
41-9-120. (A) A physician licensed 
to practice medicine pursuant to the provisions of Chapter 47, Title 40 has a 
direct, personal, and individual duty and responsibility to his patients, 
regardless of his form of practice or employment.

 (B) 
Impermissible, unenforceable, and void restrictions under subsection (A) are:

 (1) 
any restriction on the ability of a physician to practice medicine in any 
geographic area for any period of time after the termination of such 
partnership, employment, or professional relationship;

 (2) 
any restriction on the ability of a physician to continue to provide treatment, 
advise, or consult with any current patient at the patient's request, after the 
termination of such partnership, employment, or professional relationship;

 (3) 
any restriction on the right of a physician to establish a physician-patient 
relationship with any patient, at that patient's request, upon his departure 
from the partnership, employer, or other entity. No partnership, employer, or 
other entity has a responsibility to assist a physician that has departed with 
the establishment of a physician-patient relationship; and

 (4) 
any restriction on the obligation of a physician as determined by the Board of 
Medical Examiners, including the withholding of information, to notify patients 
of his or her departure from such partnership, employment, or professional 
relationship, including how the patient can obtain his medical record, and how 
to seek continued treatment from the physician, if the patient chooses. The 
partnership, employer, or other professional entity may specify in the written 
contract or agreement that it will undertake this notification on behalf of the 
physician. If the physician requests notification to his or her patients, the 
notification will be given as soon as possible. Notification must be given by 
the later of:

 (a) 
thirty days after the physician's departure; or

 (b) 
thirty days after the physician provides the new practice information in 
writing to the partnership, employer, or other professional organization.

 Section 
41-9-130. (A) Nothing in this 
chapter may be construed to prevent a partnership, employer, or other entity 
from requiring a departing physician who has worked for the partnership, 
employer, or other entity for less than three years to repay all or a portion 
of the actual costs of the following if the specific items and actual value of 
each item the partnership, employer, or other entity may seek in repayment are 
outlined and agreed to within the written agreement at the time of signing:

 (1) 
relocation expenses;

 (2) 
signing and retention bonus;

 (3) 
other renumeration to induce the physician to relocate or establish a 
healthcare practice in a specified geographic area, or recruiting, education or 
training expenses.

 (B) 
Nothing in this chapter may be construed to prevent a partnership, employer, or 
other entity from requiring a departing physic