States Target Corporate Practice of Medicine in Telehealth Crackdown
Multiple states are introducing legislation to restrict corporate ownership structures that underpin most direct-to-consumer telehealth platforms. The legislative push focuses on corporate practice of medicine doctrine, which prohibits non-physician entities from employing physicians or controlling medical decisions. These state actions could force telehealth companies to restructure their business models or exit certain markets. The timing coincides with increased regulatory attention on telehealth prescribing practices following pandemic-era flexibilities.
Medicaid MCOs that contract with telehealth vendors for behavioral health, substance use disorder treatment, or primary care services may face network disruption if those vendors are forced to restructure or cease operations in affected states.
Behavioral Health · Managed Care
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