Pharmacy Non-Compete Agreements – Pharmacy Consulting

Does your pharmacy practice have a non-compete policy in place with it’s employees? Many pharmacies do, but we would recommend a consultation with an experienced Pharmacy Consultant to determine if it is valid and enforceable if a situation ever arises where you would need to exercise your rights pertaining to a pharmacy non-compete issue.

Currently there is a case in Nebraska involving a pharmacy and former employee that is getting a lot of national attention in the press. A nurse practitioner named Denise Pollard began working for Kohll’s Pharmacy and Homecare in 2011, but was fired three years later. She had signed a non-compete agreement with the pharmacy as part of her initial employment contract. After being terminated, Ms. Pollard opened up a competing business that deals with hormone replacement and Botox. After patients started to switch to her practice, Kohll’s took her to court and was granted an injunction against her. The injunction prohibits Ms. Pollard from soliciting, contacting or providing services to any patients that she provided services for (or had personal contact with) while working at Kohll’s. Note that the injunction did not stop her from doing business in the same geographic area or offer the same services to new patients that Kohll’s offers. However, Ms. Pollard cannot treat any patients from Kohll’s for 18 months or she will be considered in contempt of court. The question is centered around what is the legality of the injunction? Harvey Cooper, a partner with Abrahams, Kaslow, and Cassman, has no connection to this case, but has extensive employment law experience. “There is no law in Nebraska currently that says patients are entitled to see whomever they want in terms of a non-compete.” He believes this issue may one day end up in front of Nebraska’s Supreme Court.  It is important to keep in mind that the non-compete issue is based on state legislation (and not on any federal jurisdiction or federal laws). Every state has it’s own rulings when it comes to an issue involving non-competes. In the area of pharmacy, both New Jersey and Massachusetts have bot ruled previously on this. One ruling was in favor Cooper did check all the states to see if there have been any rulings on patient’s rights when it comes to non-competes. He says New Jersey and Massachusetts have both ruled on this. One ruling was in favor of the pharmacy and one against.

Do you know what the laws in your state say regarding this?  Do you currently have a non-compete agreement with your employees? If you do, is it written so that it is enforceable? Don’t wait to find out until it is too late! To answer any questions you may have regarding this issue, we urge you to contact HCC today! Healthcare Consultants has been in the business of Pharmacy Consulting for over 25 years now. Known as one of the nations leading full service Pharmacy Staffing companies, HCC is also one of the industry leaders in providing a full range of professional pharmacy consultation services to its vast array of clients. Owned and operated by pharmacists, Healthcare Consultants can provide proven expertise and experience in all facets of pharmacy operations, including retail, hospital and specialty pharmacy venues. If you have questions regarding virtually any area of your pharmacy business or practice, we urge you to contact us today to see how our Pharmacy Consulting services can help. With a full-time staff of in-house Pharmacy Consultant specialists, HCC can answer any questions that you may have in all areas of your business. Call us today at 800-642-1652 for a free consultation.


Bob Miller

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