Physician’s Non-Competes in Texas: Beware! Part 3
The “buy-out” price of the non-compete can be unilaterally set by the employer in the contract, and thus typically bear no real relationship to the employer’s true economic loss of goodwill when the physician leaves. I have recently seen three times a physician’s annual salary and benefits, which would in most cases price it at a million dollars or more. Physicians look like they are given a fair chance to legitimately “buy-out” a covenant, but are precluded from doing so on a practical basis, given the exorbitant price. The statute does contain a right to have an arbitrator determine a reasonable amount for the “buy-out,” but this is an expensive process for a physician who now may well be looking for a new job.