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ARTICLE · 30 DECEMBER 2015

State AGs In The News - December 17th, 2015

Blank Rome
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A federal judge for the Western District of Texas denied the Texas Medical Board's (TMB) motion to dismiss an antitrust lawsuit filed by Teladoc, Inc.

United StatesAntitrust/Competition Law
Aaron R. Lancaster
Aaron R. Lancaster
Doreen Manchester
Doreen Manchester
Erik Lowe
Erik Lowe
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Antitrust

Texas Medical Board Suffers Blow to Immunity

  • A federal judge for the Western District of Texas denied the Texas Medical Board's (TMB) motion to dismiss an antitrust lawsuit filed by Teladoc, Inc. Judge Pitman indicated that because Texas does not maintain "active supervision" over TMB—which comprises mostly private practice physicians—TMB could not rely on sovereign immunity to support its motion to dismiss.
  • In April, after years of litigation in state court on this issue, TMB created a new rule that requires a face-to-face visit with a patient before a physician is allowed to issue a prescription. Since Teledoc offers health care consultations with a physician for non-emergency conditions over the Internet, or secure video, the new rule effectively prevented Teledoc from operating in Texas. Teledoc sued TMB alleging that it was violating federal antitrust laws and limiting interstate commerce.

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