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Health
Centers and Restrictive Covenants |
The
following is the Bureau policy for Health Centers
on restrictive covenants:
-
Local discretion will be allowed for Health
Centers as to the use of restrictive covenants,
and other Bureau
communications will remain silent on the subject.
- The
expectation is that Health Centers that
utilize restrictive covenants in their
contracts should follow State law, and
generally follow reasonable practices
that are widely used by other community
providers regarding both time and distance.
The
Bureaus current position on the use of
restrictive covenants is neutral. The
Bureaus policy will be neither to approve
or disapprove these restrictive covenant
clauses.
If you have any questions or comments regarding
the restrictive covenant policy position described
in this PIN, please contact Rhoda Abrams or
Bill Melling at (301) 594-4060.
National
Health Service Corps and Restrictive Covenants |
Described
below is information on the Bureaus decision
to review the placement experiences of National
Health Service Corps (NHSC) scholars and loan
repayors with restrictive covenants:
-
The NHSC is reviewing the initial stages of
the 1999 placement cycle, as to the implementation
of restrictive covenants and its effect on
NHSC scholars and loan repayors. Among
the questions being asked are:
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How many sites have restrictive covenants?
-
How many sites have removed or are removing
restrictive covenants?
-
What has been the experience if sites
have been asked to remove them?
-
Has the issue of restrictive covenants
and Corps members come up as a problem
at Health Centers and/or at
other sites?
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If not a current problem, may it be a
potential problem?
-
Should scholar sites and loan repayor
sites be looked at differently?
- Upon
completion of this review, a final decision
on NHSC scholars and loan repayors and restrictive
covenants will be made in the next few months.
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