digital, mobile, and virtual medicine: legal...
TRANSCRIPT
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Digital, Mobile, and Virtual Medicine:
Legal Challenges Protecting Patient Privacy, Avoiding Corporate Practice of Medicine, and Ensuring Quality of Care
Today’s faculty features:
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
The audio portion of the conference may be accessed via the telephone or by using your computer's
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have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.
THURSDAY, MAY 2, 2013
Presenting a live 90-minute webinar with interactive Q&A
Ryan S. Johnson, Shareholder, Fredrikson & Byron, Minneapolis
Katherine Douglas, Shareholder, Fredrikson & Byron, Minneapolis
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Digital, Mobile, and Virtual
Medicine
Ryan Johnson, Esq.
Katie Douglas, Esq.
Fredrikson & Byron, P.A.
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Today’s Presentation
Introductions
Virtual Medicine • Business Model
• Legal Issues
• Best Practices
mHealth • Business Model
• Legal Issues
• Best Practices
Q&A 6
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Convenience Care
Consumer-driven demand for accessible, affordable, quality health care
Convenience Care • retail clinics
• virtual medicine traditional telemedicine
online consultations
• mHealth (mobile apps)
Many Common Legal Issues
Evolving Regulatory Landscape
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Online Visits
Business Model
Online Diagnosis, Treatment, and Prescriptions
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Online Visits:
Legal and Regulatory Issues Federal and State Privacy Laws
Scope of Practice
• supervision/collaboration requirements
Prescriptive Authority
Corporate Practice of Medicine
Malpractice Risk
Reimbursement
Fraud & Abuse
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Online Visits
Privacy and Security
HIPAA’s Applicability
• Covered Entities
• Business Associates
Protected Health Information • Individually identifiable information (written, electronic,
or oral) created or received by a provider;
• Relating to an individual’s health, the provision of health care to an individual, or the payment for health care;
• That identifies the individual or provides a reasonable basis to identify the individual.
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Online Visits
Privacy and Security HIPAA Security Rule
• Requires implementation of administrative, physical, and technical safeguards to protect electronic PHI
• Covered entities and business associates must: Ensure the confidentiality, integrity and availability of
all ePHI that it creates, receives, maintains or transmits.
Protect against any reasonably anticipated threats or hazards to the security or integrity of ePHI
Protect against any reasonably anticipated impermissible uses or disclosures of ePHI
Ensure compliance by all workforce members.
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Online Visits
Privacy and Security Consider the following:
• Organization size, complexity, and capabilities
• Organization’s technical infrastructure, hardware, and software security capabilities
• Costs of security measures
• Probability and criticality of potential risks to ePHI
Examples: • Encryption
• User authentication
• Secure networks
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Online Visits
Privacy and Security
HIPAA Privacy Rule
• Prohibits uses or disclosures of PHI that are not permitted by the Privacy Rule
• Marketing is prohibited without patient’s authorization
What is “marketing?”
• a communication about a product or service that encourages recipients of the communication to purchase or use the product or service
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Online Visits
Privacy and Security
Exceptions to marketing definition
• Communications for the treatment of an individual by a health care provider or to direct or recommend alternative treatments, therapies, health care providers, or settings of care to the individual
unless the covered entity receives financial remuneration in exchange for making the communication
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Online Visits
Privacy and Security
Exceptions to marketing definition (cont.)
• Communications to describe a health-related product or service that is provided by or included in a plan of benefits of the covered entity
unless the entity receives financial remuneration in exchange for making the communication
• Refill reminders 15
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Online Visits
Scope of Practice/
Prescriptive Authority
MDs v. NPs v. RNs v. PAs
Physician supervision rules
• written collaborative agreement
• protocols
• on-site requirements
• ratios
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Online Visits
Scope of Practice/
Prescriptive Authority
Telemedicine
• Nurse Licensure Compact
• consultation exceptions
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Online Visits
Prescriptive Authority
Legislative/Regulatory History
Requirements
• face-to-face
• existing patient relationships
Strategies
Future
• push to clarify requirements/change law and accommodate online consultations
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Online Visits
Corporate Practice of Medicine
(“CPM”) Prohibition
CPM doctrine prohibits business corporations from employing medical professionals or owning/controlling medical practices
CPM prohibition has been criticized by many scholars
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Online Visits
CPM Violations
Potential Ramifications • refusal to pay claims
• injunction against continued operation of clinic
• criminal prosecution for engaging in the unauthorized practice of medicine
• entire arrangement could be declared void
• technical violation of certain fraud and abuse laws (e.g., the False Claims Act) by virtue of submitting claims to Medicare or Medicaid
• loss of “private practice”, “physician office” and similar exceptions from state licensing requirements (CON, lab license, etc.) 20
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Online Visits
CPM Solutions
If state CPM prohibition applies to structure, the management company model may be an option.
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Management
Company
“MC”
Professional
Corporation
“PC”
MD, NP or PA Owner(s)
Administrative Services
Management Fee
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Online Visits
CPM Solutions
Management Agreement • long-term • restrictions on termination • restrictive covenant • management fee • management company can handle all
non-clinical matters
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Online Visits
CPM Solutions
Risks with management company structure
• owners may seek to void the agreement
• may be viewed as a sham
• licensing boards
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Online Visits
Fee-Splitting Many States Prohibit Fee-Splitting
• perceived danger of allowing professionals and non-professionals to share in income from professional services
the temptation for the health care professional and nonprofessional to maximize profit through medically unnecessary services
temptation for the health care professional and the non-professional to limit medically necessary services in order to maximize income
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Online Visits
Federal Anti-Kickback Statute Prohibits the offering, paying, soliciting or
receiving any remuneration in return for
• business for which payment may be made under a federal health care program; or
• inducing purchases, leases, orders or arranging for any good or service or item paid for by a federal health care program
Remuneration includes kickbacks, bribes and rebates, cash or in kind, direct or indirect.
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Online Visits
AKS (cont.)
Criminal and Civil Penalties
Imprisonment
Civil Monetary Penalties
False Claims Act exposure
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Online Visits
AKS (cont.)
Relationships requiring AKS analysis
• relationship with supervising/collaborating physicians
• relationship with others (management company, etc.)
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Online Visits
AKS (cont.)
no issue if federal health care programs are not involved.
• but remember state anti-kickback prohibitions
safe harbor protection
advisory opinions
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Online Visits
Self-Referral Prohibitions
The Stark law prohibits a physician from making a referral for certain designated health services (“DHS”) to an entity with which the physician (or an immediate family member) has a financial relationship, unless one of its many exceptions applies
Stark also prohibits entities from submitting claims for DHS provided pursuant to a prohibited referral 30
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Stark (cont.)
Stark is a strict liability statute, meaning that the intent of the parties is irrelevant for purposes of determining whether the law has been violated
Stark provides for monetary penalties and requires the refund of amounts paid for illegally referred DHS
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Online Visits
Malpractice Risks
Telemedicine/Online Consultations
• What is the standard of care?
• One example: Hageseth v. The Superior Court of San
Mateo County, 59 Cal. Rptr.3d 385 (Cal. Ct. App. 2007).
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Online Visits
Risk Management
Risk Management
• peer review
robust physician supervision/chart review
• monitor developments in clinical practice guidelines
use evidence-based treatment guidelines
• check with insurance carrier
• limit scope of practice/services offered online
• address continuity of care
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Online Visits
Reimbursement
Employers and Individuals
Private/Commercial Payors
Government Payors
• Medicare
• Medicaid
• other
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mHealth
What is mHealth?
• use of diagnostic apps on mobile devices (PDAs, tablets, Google Glass, etc.)
Use of apps increasing
Regulatory landscape is evolving
• FDA Guidance
• Congressional Hearings
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mHealth
Food and Drug Administration
(“FDA”) Background
• FDA regulates "medical devices"
broad definition
• some mobile apps fit definition of “medical device”
• 2011 Guidance
• Recent Congressional Hearings
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mHealth
FDA Position Recognizes value of mobile apps
Predicts 500 million users worldwide by 2015
• and 3.4 billion downloads by 2018!
• believes it is important to adopt a “balanced approach to mobile medical apps that supports continued innovation, assuring appropriate patient protections”
• manufacturers need a clear, predictable, and reasonable understanding of FDA’s expectations
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mHealth
FDA Position
Reviewed approximately 100 mobile medical apps
• remote blood pressure, heart rhythm, patient monitors, smartphone-based ultrasounds, EKG machines, and glucose monitors
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mHealth
2011 Draft Guidance
Definitions
“mobile platforms”
• commercial off-the-shelf (COTS) computing platforms, with or without wireless connectivity, that are handheld in nature
examples: smart phones, tablet computers, and PDAs
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mHealth
Definitions (cont.)
“mobile application” or “mobile app”
• “software application that can be executed (run) on a mobile platform, or a web-based software application that is tailored to a mobile platform but is executed on a server”
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mHealth
Definitions (cont.)
“mobile medical application” or “mobile medical app” meets the definition of a “device” if it:
• (a) “is used as an accessory to a regulated medical device”; or
• (b) “transforms a mobile platform into a regulated medical device.”
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mHealth
Regulated Product?
whether a product is a mobile medical app depends on its intended use
• intent is everything
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mHealth
Excluded Apps electronic textbooks or references
general health and wellness mobile apps
office administration mobile apps
generic aids
electronic or personal health records
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mHealth
Regulated Entities
Manufacturers
Does not include app distributors
• Android Market, iTunes Store, and BlackBerry App World.
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mHealth
Privacy Laws
HIPAA
State laws
State consumer protection laws
• Ex. California
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mHealth
Federal Advertising Laws
Federal Trade Commission
• FTC consumer protection law prohibits unfair or deceptive trade practices
applies to all mobile apps
enforcement actions
• Cheerios Letter
• acne case
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mHealth
Federal Advertising Laws
FTC Recommendations
• incorporate privacy protections into standard business practices
• provide customers with simpler privacy options
• increase transparency of data practices to consumers
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mHealth
State Advertising Laws
Professional Licensure Requirements
State Consumer Protection Laws
Remember: HIPAA and similar state laws
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mHealth
Licensing & Prescriptive
Authority Face-to-face requirements
Established patient relationship
Scope of Practice
• collaboration/supervision requirements, etc.
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mHealth
Malpractice
Negligent Use
Negligent Referral
Risk Management
• providers
prohibit use of apps
restrict use of apps to pre-approved list
other
• app developers
disclaimers
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mHealth
Reimbursement
Evolving landscape
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mHealth
Fraud and Abuse
AKS
Fee-Splitting
Self-Referral Prohibitions
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mHealth
Practice of Medicine?
Questions
• What constitutes practice of medicine?
• Medical/nursing board position?
• CPM
• Unauthorized practice of medicine
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Contact Information
Ryan Johnson
• 612.492.7160
Katie Douglas
• 612.492.7283
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