Judge grants injunction in Aspirus St . Luke non - compete case

duluthnewstribune.com · Feb 23, 2026 · Collected from GDELT

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DULUTH — Aspirus St. Luke’s is prohibited from enforcing the non-competition provisions of its employment agreement with Dr. Nyasha Spears as she pursues a private direct primary care practice following a temporary injunction granted by a State District Court judge.Spears said she is “very pleased" with the decision because she is "excited to help people in our community by creating a new way to access high quality primary care at an affordable, transparent price.” Spears and Dr. Kristin Lusian plan to open Amity Creek Primary Care in Lakeside at 5931 E. Superior St. in April. They will begin enrolling patients in March. Nyasha Spears.Contributed / Aspirus St. Luke's Spears was hired as a family physician at St. Luke’s P.S. Rudie Medical Clinic in October 2013, and her employment agreement contained language barring Spears from engaging in medical practice or business substantially similar to her position within a 25-mile radius for one to two years following termination of employment. The agreement also contained non-solicitation language prohibiting Spears from enticing patients from Aspirus St. Luke’s or its services.Spears and other physicians were relocated to other sites following the closure of the P.S. Rudie Mecical Clinic last March, at which time they were given 36 days notice, according to court documents. However, the employment agreement required a 180-day notification. Physicians claimed this was a breach that should release them from the non-compete agreement, but Aspirus St. Luke’s declined their request.Spears remained employed with Aspirus St. Luke’s, but filed a civil employment contract case against the hospital.On Feb. 17, Judge Shawn Reed granted a temporary injunction, finding that “enforcement of the non-compete would prevent (Spears) from practicing medicine in her established community, disrupt care for her patients, and impose significant personal and professional hardship.”The judge also found that enforcement of the non-compete would reduce access to primary care for residents of Duluth and surrounding areas, given the city’s documented shortage of primary care physicians.“Non-competes should not be enforced in a manner that harms the community,” the ruling stated. “The closure of the P.S. Rudie Clinic, coupled with enforcement of the non-compete, would restrict patient access to care and disrupt continuity of treatment.” At their clinic Spears and Lusian will provide direct primary care — a model in which patients can access care for a flat monthly fee. “Although anyone can access care in this model, direct primary care generally serves working individuals and families such as tradespeople, entrepreneurs, small business owners or employees who are falling through the cracks of our health care system because they make too much money to qualify for medical assistance but can’t afford insurance or have very high-deductible insurance,” Spears said.Spears told the court her practice would not accept Medicare, Medicaid or other insurance.“The evolution of insurance-driven health care has degraded relationships between doctors and patients,” according to Spears. “There are now multiple, often competing, forces in the exam room. Every doctor-patient interaction is influenced by requirements from insurance companies and patient fears of unexpected bills.”With direct primary care, Spears said "there are no intermediaries, no insurance requirements for billable services, and the flexibility for longer visits.” The physician recommends her future patients continue to carry insurance for medical services beyond the scope of primary care. “We are looking forward to partnering with St. Luke’s and Essentia to seamlessly provide access to the great doctors there when our patients need those services,” Spears said. Brielle Bredsten is a business and health care industry reporter for the Duluth News Tribune. Send her story tips, feedback or just say hi at bbredsten@duluthnews.com.