Teladoc Sues Texas Medical Board

Last week, the Texas-based telemedicine company, Teladoc, sued the Texas Medical Board over a recently passed rule, which requires an in-office face-to-face visit for a Texas physicians to prescribe medications. This new rule is a huge blow to the growing telemedicine field, especially to a company like Teladoc, whose patient population is overwhelmingly based in the State of Texas.

Teladoc’s case hinges on antitrust grounds, stating that the only purpose of this new rule is to put companies like Teladoc out of business. “It is clear that the medical board acted only when Teladoc consultations became sufficiently numerous to be perceived as a competitive threat to brick-and-mortar physician practices,” Teladoc CEO Jason Gorevic said. “We can’t sit back and let a bad rule by the Texas Medical Board rob from millions of consumers and physicians the tremendous benefits of telehealth.”

The rule, if enacted as written, will take effect on June 1, making this summer an important one for Teladoc, who recently filed for their IPO.