Iowa House Bill HSB654

Iowa 2025-2026 Regular Session

• Introduced: 2/3/26
• Refer: 2/3/26

Caption

A bill for an act prohibiting specified provisions in agreements between employers and health care providers relating to location of practice.

Impact

The legislation is projected to positively influence the availability of healthcare in rural communities by preventing restrictive practices that could limit the ability of providers to continue serving these areas after changing employers. By voiding non-compete clauses specifically related to rural healthcare access, HSB654 aims to foster broader healthcare opportunities for both the providers and the communities they serve. This could lead to improved health outcomes in underserved areas of Iowa, where access to medical care is crucial.

Summary

House Study Bill 654 (HSB654) aims to prohibit specific provisions in agreements between employers and healthcare providers that limit the providers' practice locations after leaving employment. This bill will ensure that healthcare providers, such as physicians, nurses, and other licensed professionals, retain their rights to practice at critical access hospitals and medical facilities in designated rural areas if they terminate their employment. It seeks to enhance the mobility of healthcare workers within Iowa, particularly in regions that often struggle to retain qualified healthcare professionals.

Contention

However, the bill may face contention, particularly from healthcare employers who could argue that these provisions limit their ability to protect their business interests and patient relationships. Provisions that allow healthcare providers to solicit current or former patients are still enforceable, which could lead to further complications in employer-employee relationships. The debate will likely revolve around the balance between protecting healthcare providers' rights to practice freely and safeguarding the operational integrity of healthcare organizations.