Joseph Lento
Telehealth has transformed the healthcare landscape, providing patients with unprecedented access to medical professionals across state lines. However, this rapid expansion has also led to heightened regulatory scrutiny, creating significant legal challenges for healthcare providers. Licensing boards, state legislatures, and federal agencies are tightening restrictions, making it more difficult for professionals to navigate the complex web of telehealth regulations.
While telehealth was temporarily deregulated during the COVID-19 pandemic to allow providers to meet public health needs, many of those emergency waivers have since expired. Now, states are reinstating and, in some cases, strengthening their pre-pandemic telehealth regulations, resulting in an increase in licensing investigations and disciplinary actions.
Joseph Lento, founder of Lento Law Firm, represents professionals in disciplinary actions related to licensing boards, including cases involving telehealth regulations. As the field undergoes regulatory shifts, his firm is addressing legal challenges affecting healthcare providers and their licenses.
Conflicting State Laws and the Cross-Border Licensing Dilemma
One of the primary challenges for telehealth providers is the patchwork of state laws governing out-of-state practice. Unlike in-person medical care, where jurisdiction is clear, telehealth regulations vary significantly, leading to conflicting licensing requirements for providers who serve patients in multiple states. Some states require telehealth providers to hold a full medical license in the state where the patient is located, even if they are already licensed elsewhere. Others allow reciprocity or compact agreements, making it easier for doctors to practice across state lines, but the eligibility criteria vary widely. A growing number of states are imposing stricter telehealth rules for prescribing controlled substances, making compliance even more challenging for mental health professionals, pain management specialists, and primary care doctors.
These inconsistencies have led to cases where physicians and therapists have unknowingly violated licensing laws, resulting in disciplinary actions, license suspensions, or financial penalties.
“To mitigate legal risks, telehealth providers should stay proactive by regularly consulting with legal experts to understand the complexities of each state’s licensing laws. It’s essential for professionals to maintain meticulous records of their licensure status in each state where they practice and to implement compliance programs that ensure adherence to local regulations. Additionally, obtaining legal guidance on telehealth contracts and state-specific telehealth regulations can prevent inadvertent violations,” Lento elaborates.
Increased Enforcement Actions Against Telehealth Providers
Regulatory agencies and licensing boards are ramping up investigations into telehealth providers, often initiating disciplinary actions based on minor compliance errors. Some professionals have been accused of practicing medicine without a license simply for consulting with a patient in a state where they were not properly credentialed. Telehealth mental health providers have faced disciplinary actions for providing therapy across state lines, even when state laws were ambiguous about licensure requirements. In certain cases, providers have had telehealth consultations flagged by AI-powered compliance monitoring systems, triggering licensing board inquiries before any formal patient complaints were filed.
This heightened scrutiny has left many professionals uncertain about whether they are in compliance with ever-changing telehealth laws. Some have preemptively stopped offering telehealth services in certain states to avoid legal risks, reducing patient access to care.
“The rise in enforcement actions raises concerns about the disproportionate targeting of telehealth providers, especially when minor regulatory oversights can lead to severe consequences. While it’s essential for regulatory bodies to ensure compliance, many professionals are facing investigations for unintentional errors, raising questions about whether these actions are truly necessary or if they create a chilling effect on providers who are simply trying to meet the healthcare needs of their patients. Professionals are often faced with minimal guidance from regulatory bodies, yet face severe consequences as they attempt to navigate these uncharted waters,” states Lento.
The Role of AI in Monitoring Telehealth Compliance
Technology has not only expanded access to telehealth but also increased regulatory oversight through AI-driven compliance monitoring. Many licensing boards and insurance providers are now using AI-powered systems to detect potential telehealth violations, including automated flagging of providers offering virtual care in states where they may lack full licensure, real-time tracking of telehealth prescriptions, particularly for controlled substances, and AI-driven analysis of billing codes to identify potential fraudulent or non-compliant telehealth claims.
While proponents argue that AI monitoring improves regulatory enforcement and reduces telehealth fraud, critics worry that these systems lack nuance, leading to false flags and unnecessary investigations into legitimate providers who made minor administrative mistakes.
Lento goes on, “AI-driven compliance monitoring in telehealth raises significant ethical and legal concerns, particularly regarding the lack of context in automated decision-making. While AI can enhance efficiency, it may overlook critical nuances in cases where providers are operating in good faith. Legal safeguards must be put in place to ensure that these systems do not unjustly penalize professionals for technical errors or result in undue reputational damage without the opportunity for proper review and recourse. Professionals should inform themselves of their rights and seek experienced professional help as soon as possible when faced with potential disciplinary action.”
Federal and State Policy Changes on the Horizon
With telehealth continuing to evolve, legislators at both the state and federal levels are debating new laws to standardize regulations and address the current inconsistencies in licensure requirements. Some policymakers are pushing for a national telehealth licensing framework, which would allow medical professionals to treat patients across state lines without needing multiple licenses. Others advocate for expanding existing interstate medical licensure compacts, which have already allowed some doctors and therapists to practice in multiple states without additional bureaucratic hurdles. Certain states are considering harsher penalties for telehealth providers who fail to comply with evolving regulations, even if they were unaware of recent legal changes.
As these debates unfold, healthcare professionals remain in legal limbo, unsure whether current licensing laws will become more restrictive or if future reforms will ease regulatory burdens.
“As telehealth regulations continue to evolve, professionals should expect an increased emphasis on compliance, especially with stricter state laws and the potential for new national frameworks. While reform efforts may provide some clarity, it’s uncertain whether they will succeed in creating a consistent regulatory environment. Telehealth providers should prepare for potential changes by staying informed and adopting a flexible approach to their practice across state lines. As always, seeking experienced, professional help at the earliest indication of any issue is the best strategy,” Lento ends.
Navigating the Legal Challenges Ahead
For telehealth professionals, the current regulatory landscape presents both opportunities and risks. While technology has made healthcare more accessible, the regulatory framework has not kept pace, leaving many providers vulnerable to licensing disputes and disciplinary actions.
Legal experts anticipate that litigation over telehealth licensing and enforcement will increase, particularly as professionals challenge state boards that impose overly restrictive or unclear requirements. Meanwhile, professional associations are urging lawmakers to establish uniform telehealth licensing rules to prevent future legal uncertainty.
As the battle over telehealth regulation continues, healthcare professionals must stay informed about shifting laws, licensing requirements, and enforcement trends to protect their ability to practice.
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This article is an opinion piece for informational purposes only. VC Post and its affiliates do not take responsibility for the views expressed. Readers should conduct independent research to form their own opinions.