Yikes, this is for ANY type of PA job within a 35 mile radius? Depending on where this hospital is, that can eliminate a lot of hospitals (especially if this is in a major city). I'd recommend changing to a lower radius depending on where you are or ask to narrow the limitation to a hospitalist position only (not just all PA jobs). It will only benefit you to question the non-compete and to change it (I expect that they anticipate this). I read somewhere that strict non-compete clauses are typical for doctors, but shouldn't be for PAs. This would be a breaking point for me if I couldn't be employed for 2 years after within 25 miles... that's asking too much. Maybe even ask to decrease that to 1 year in addition to a lower radius.
I just negotiated having a clause in my contract removed (I'm a new grad too, which stated I couldn't work at any job outside of the hospital while was working for them (I'd be doing three 12 hour shifts and would like the option to do per diem elsewhere). I asked them about the clause and what they meant, if that meant I couldn't coach a sports team, tutor, etc. They were totally willing to have that removed in the contract and just wanted me to understand that my other jobs won't interfere with my full-time job.