On June 21, 2017, the Federal Trade Commission (Commission) voted to close its investigation into whether the Texas Medical Board (TMB) violated federal antitrust laws by adopting rules that restricted the practice of telemedicine and telehealth in Texas. The Commission stated that it voted to close the investigation after Texas enacted a law that would override the restrictive rules.
On June 21, 2017, Secretary of the Commission, Donald Clark, sent a closing letter to the Office of the Attorney General of Texas stating that upon further review, it appeared no further action was warranted by the Commission, and that it was closing its non-public investigation into whether the TMB was engaging in conduct that violated Section 5 of the Federal Trade Commission Act through TMB’s adoption and enforcement of rules related to the provision of telemedicine services by physicians.
In a statement released June 21, 2017, the Commission stated that it closed the investigation after Texas enacted a law that establishes a regulatory structure “that fosters the growth of competitive and innovative healthcare services for Texas consumers, overriding the TMB’s restrictive rules.” Specifically, the Commission’s statement noted that the Texas law would likely promote competition and expand consumer choice through the following:
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Preventing TMB and other regulatory agencies from adopting rules that impose a higher standard of care for telemedicine or telehealth services than would be required for in-person services;
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Overriding current regulations that block telemedicine or telehealth providers from providing healthcare services, by expressly allowing a practitioner-patient relationship to be established through the use of telemedicine or telehealth services; and
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Repealing an earlier law that allowed TMB to adopt rules requiring an in-person consultation within a designated period following an initial telemedicine appointment.
The Commission’s statement is available here. A copy of S.B. No. 1107, which was signed by Texas Governor Greg Abbott on May 27, 2017, is available here.
