Teladoc claims New Rules by Texas Medical Board are limiting Competition

Teladoc claims New Rules by Texas Medical Board are limiting Competition

New rulings by the Texas Medical Board require doctors to meet patient personally before the provision of telemedicine appointments. Fearing that it could make Dallas-based Teladoc to be out of the business in Texas and possibly in nation, it has sued the board on Wednesday.

The case has been filed in the US District Court in Austin. The suit alleges that the board is limiting the competition by protecting Texas physicians from completion. The ruling that was passed on April 10 could 'bring Teladoc to the brink of bankruptcy', claimed the company.

"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", said Jason Gorevic, Teladoc's chief executive officer. In response, the medical board stated that it 'stands by the rules as adopted but cannot comment any further due to ongoing litigation'. The company works with employer-sponsored insurance plans in which nearly 11 million people are covered and provision is given of day-or-night access by phone or video to a physician.

As per the company, it covers around 2.4 million people in Texas. The Texas Medical Board having 12 practicing physicians voted 13-1 for the new rule.

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