Schenectady leaders are rallying behind new legislation introduced by Assemblyman Angelo Santabarbara to prevent health care noncompete agreements from being enforced when they threaten essential hospital services or a community’s access to care.

The Essential Health Care Access Protection Act was introduced by Assemblyman Santabarbara in response to the ongoing dispute between Ellis Medicine and St. Peter’s Health Partners involving 27 cardiologists who provide services at Ellis. Ellis has warned that losing access to the physicians could jeopardize its cardiology program and affect emergency, critical care and other essential hospital services.

Assemblyman Santabarbara is now being joined by Schenectady Mayor Gary McCarthy and Schenectady County Legislature Chairman Gary Hughes in calling for protections to ensure that a private contractual dispute does not put essential health care services at risk.

“Ellis Hospital is essential to Schenectady, and I’m not going to stand by while a dispute over noncompete agreements puts our hospital or access to care at risk,” said Assemblyman Angelo Santabarbara. “This has gone far beyond a disagreement between two health systems. When decisions made under a private contract can affect cardiology, emergency care, critical care and the future of hospital services for an entire community, the public interest has to come first. My legislation draws that line. Noncompete agreements should not be enforceable when the result is putting essential health care at risk.”

Under Santabarbara’s legislation, New York courts would be prohibited from granting injunctive or other equitable relief to enforce a restrictive covenant against a health care professional when enforcement would materially impair access to essential health care, eliminate or substantially reduce an essential clinical service, impair emergency, critical care, cardiac, pulmonary or other essential services, or otherwise create a substantial risk to the continued availability of hospital services.

The legislation specifically directs courts to consider the number of patients affected, whether comparable care is available nearby, the number and specialties of health care professionals involved, the effect on emergency and critical care, continuity of patient care and the ability of the hospital to maintain essential services.

Paul Milton, President and CEO of Ellis Medicine, said protecting patient access to essential services must remain the priority.

“We appreciate Assemblyman Santabarbara’s efforts to protect access to essential health care services in Schenectady and communities across New York. Patients should not lose access to critical medical services because of restrictive employment agreements.”

Schenectady Mayor Gary McCarthy said the consequences of the dispute cannot be allowed to fall on Schenectady patients.

“Ellis Hospital is critical to Schenectady, and I find it deeply troubling that the leadership of St. Peter’s would seek to enforce noncompete agreements that could threaten essential health care services in our city,” McCarthy said. “Schenectady patients should not pay the price for decisions being made in an Albany corporate boardroom. If enforcing these agreements puts cardiology or other essential hospital services at risk, then they should not be enforced. I strongly support Assemblyman Santabarbara’s legislation to put patients and our community ahead of corporate interests and protect the health care Schenectady depends on.”

Schenectady County Legislature Chairman Gary Hughes emphasized the countywide consequences of losing essential services at Ellis.

“Ellis is the only acute care hospital serving Schenectady County, so protecting access to its essential health care services is a countywide concern,” Hughes said. “Our residents need to know that emergency, cardiac and other critical care will be there when they need it. Assemblyman Santabarbara’s legislation puts patients first by making sure noncompete agreements cannot threaten the health care an entire county depends on.”

Assemblyman Santabarbara said the issue extends well beyond the parties involved in the current dispute.

“This is about whether a private employment restriction should have the power to disrupt health care for tens of thousands of people,” Santabarbara said. “My answer is no. Patients did not sign these contracts. Schenectady did not sign these contracts. They should not be the ones who suffer the consequences.”

The legislation would take effect immediately and would apply to applications for injunctive or other equitable relief made or pending on or after its effective date.

“We have a hospital to protect and a community depending on us,” Santabarbara said. “Schenectady is speaking with one voice: essential health care comes before noncompete agreements. We are going to fight to protect Ellis and the patients who depend on it.”