The following appeared in the sci.med newsgroup. It is posted for information. Similar regulations are in effect in California. ---------------------------------- ======== Newsgroups: sci.med Subject: Texas Illegal Practice of Medicine By Reviewers and Insurance Companies From: [log in to unmask] (Stephen Hammond) Date: Fri, 20 Dec 1996 20:13:17 GMT Just thought I would pass this on. To: PAT Board of Directors PAT Board of Governors Memorandum From: Wayne Clark Administrator, CEO Subject: illegal Practice of Medicine Date: December 20, 1996 The Texas Board of Medical Examiners has adopted a new policy which states in part: "The exercise of decision-making authority over the need for appropriateness of a medical evaluation or care so as to effect diagnosis or treatment is the practice ofmedicine.Consequently, such activity requires a Texas medical license. To avoid a violation of the law regarding unlicensed practice, reviewers, insurers, medical directors, and managed care gatekeepers should be particularly conscientious in allowing physician providers to exercise independent medical judgment to the greatest extent possible." Some History Last spring, in meetings and discussions with the HCFA (Health Care Financing Administration), a division of Health and Human Services, anopportunity presented itself to discuss licensing issues specific to telemedicine. This also led to the question of related licensing matters inmanaged care. As a consequence, the Health Resources and Services Administration (HRSA), another division of Health and Human Services (HHA), solicited comments fromthe public and state agencies responsible for regulating medical licensing. Some state licensing boards recognized the opportunity this issue presentedto potentially usurp and dilute their authority. Specifically, the HHA wassaying that many of the current regulations serve as an impediment to reducing costs and furthering the objective of converting Medicare beneficiaries to managed care. Conversations with and questions posed tosome of these boards enlightened them as to the possible intent and potential impact of this process. Additionally, physicians and specialty organizations have become increasingly sensitive to the manner in which insurers and agencies controland limit an enrollee's or beneficiary's equal access to care. This hasnaturally led to an increase in complaints from consumers and physicians.Especially consumers with higher cost disease/injury cases which have traditionally relied upon and been referred to specialty health care providers who may appear to be more expensive to utilize. Texas has been the first to take action on this issue. The Texas Board of Medical Examiners received comments and evidence onthe adverse impact and potential harm to patients that could result fromthe influence of unlicensed individuals on the medical decision-makingprocess of Texas physicians. Therefore, the TBME, consistent with theprovisions of section 3.06(l) of the Texas Medical Practice Act, took the position that the determination of medical necessity or appropriateness of proposed care so as effect the diagnosis or treatment of a patient, is the practice of medicine. Further, a person who practices medicine in Texas without a license or permit, so as to cause financial, physical, or psychological harm shall be subject to prosecution for a third degree felony as provided for in section 3.07 of the Medical Practice Act. You should and can expect this to be challenged in the Courts. However, those challenges may initially be limited to appeals on cases involving criminal prosecution, imposition of monetary penalties, or applications for injunctive action. We believe our position must be to encourage all licensed health care professionals to immediately report any and all incidents they believe constitutes the unlicensed practice of medicine. As always, werecommend these reports be in writing. In addition to reporting these incidents to the Texas Board of Medical Examiners, copies should be sent to other relevant state agencies. These might include the Texas Department of Insurance, the Attorney General, the Texas Workers' Compensation Commission, the patient, the employer, your legislator or senator, and others appropriate to the circumstances. Those who may be suspected of violating the Texas Medical Practice Act include insurers, case managers, third party review companies, agency employees, managed care companies, managed care gatekeepers, and out-of-state medical directors. Utilization Management practices, common to many managed care agreements and health insurance policies sold to employers today, which are not based upon nationally recognized standards of care and nationally accepted standards of practice could also be regarded as a violation of the Medical Practice Act. ============================= Best, Bob *********************************** ROBERT A. FINK, M. D., F.A.C.S. Neurological Surgery 2500 Milvia Street Suite 222 Berkeley, CA 94704-2636 USA Phone: (510) 849-2555 FAX: (510) 849-2557 WWW: <http://www.dovecom.com/rafink/> "Ex Tristitia Virtus" ***********************************