On May 4, 2023, Indiana Gov. Eric Holcomb signed into law Indiana’s Senate Enrolled Act 7 (SEA 7), which further restricts physician noncompete agreements between employers and physician employees and becomes effective July 1, 2023.

As discussed in further detail below, SEA 7 (i) makes primary care physician noncompete agreements unenforceable; (ii) makes existing noncompete agreements with other physician providers unenforceable, depending on the grounds leading to a physician’s departure; and (iii) establishes a formal process for negotiating a “reasonable” noncompete buyout.