States Target Corporate Practice of Medicine in Telehealth Crackdown
Multiple states are pursuing legislation to restrict the corporate structures used by most direct-to-consumer telehealth companies, focusing on corporate practice of medicine doctrine. The legislative activity affects how telehealth platforms operate, particularly arrangements where non-physician entities own and control clinical operations. These moves follow increased scrutiny of prescribing practices at companies like Cerebral and Done, with states seeking to ensure physician independence in clinical decision-making. The regulatory changes could force restructuring of telehealth business models and affect network provider arrangements.
Medicaid MCOs relying on telehealth vendors for behavioral health, primary care, or specialty services may face network disruptions if state enforcement forces platform restructuring or exit from certain markets.
Behavioral Health · Managed Care
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