Since the majority of the value of any professional practice is goodwill, most buyers will require some type of non compete provision.  Essentially a buyer does not want the seller setting up another location around the corner and stealing all the patients.  Non compete clauses include a time period and radius around the practice. Depending on the location (rural or urban)  the clause could be 3-10 years and 3 to 25 miles.  Office located in cities will have much shorter radiuses.  Practices in very rural communities might have mileage provisions as large as 50 miles.  Consideration should be given to the age of the seller and the reason for the sale.

Often times "carve outs" are provided to allow the seller to work as a relief doctor for practices in the local area.  Limits may be placed on the total days per year at any one office and in advertising their name.  Also the sale price could impact the covenant.  A lower sale price might warant a smaller non-compete clause and vice versa.