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States Move to Amend, Clarify Telehealth-Related Standards of Care

Multiple states – including Alaska, Wisconsin and New Jersey – have been busy finalizing legislation and rulemaking to adopt interstate compacts and amend and clarify telehealth-related standards of care.

What else have these states been up to over the last month?

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States Move to Regulate Telehealth-Related Youth Services

Numerous states—including Louisiana, Ohio, California, Tennessee and New Jersey—have been finalizing rulemaking and legislation that create or amend professional practice standards to incorporate telehealth. Several of these states have also proposed regulations or laws related to the provision of care to youths.

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New Jersey Healthcare Transactions Now Face Onerous Employment Requirements

As of November 16, 2022, New Jersey Senate Bill No. 315 (S-315) has come into effect. The bill introduces fresh employment protections for qualifying employees of select private healthcare organizations that experience a “change in control.” The legislation mandates several obligations, such as giving prior notice, extending job offers to eligible employees, and providing improved job security against termination for a minimum of four months post-transaction. To avoid employment-related lawsuits and penalties, healthcare employers and investors in New Jersey must ensure compliance with these regulations.

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Extended Notice and Required Severance: Expansions to New Jersey’s WARN Act

In late 2022, the New Jersey Senate passed Assembly Bill No. 4768. The legislation–signed into law by Governor Phil Murphy earlier this year–implements the state’s Millville Dallas Airmotive Plant Job Loss Notification Act and requires that employers provide their employees with 90 days’ notice and severance pay in connection with a mass-layoff event.

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DOJ’s Enforcement Activity Against Individuals: Acute Focus on Telemedicine

DOJ’s focus on individual accountability is particularly important with respect to telemedicine. Telemedicine is a burgeoning field, with a projected market increase of 18% annually over the next six years, reaching $103 billion in 2024. In light of this recent surge in profitability, DOJ has begun paying extra attention to telemedicine, with at least one recent HHS-OIG report asserting that more than one-third of all telemedicine claims are improper.

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