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LIFE SCIENCES
HEALTHCARE
1 | ARTHUR COX
Legal landscape struggles to
keep pace with the rise of
Telemedicine
Group Briefing
July 2016
Telemedicine encompasses a
wide variety of services such as
teleconsultation, telemonitoring and
telesurgery. Telemedicine can also
include remote consultation/e-visits
or video conferences between health
professionals and can be delivered
through various forms of IT systems
including mobile phone apps.
It is this complexity in delivery
that causes headaches for the legal
landscape due to the interplay between
the regulation of healthcare services,
medical devices, intellectual property
and data protection when offering
telemedicine services.
DEFINITION AND SCOPE OF TELEMEDICINE
Thenatureandscopeoftelemedicine
canbesomewhatdifficulttodefine.At
present,mostEuropeanUnionMember
Stateshavenotadoptedlegalinstruments
specificallyregulatingtelemedicine,
includingIreland.Therefore,thereis
nolegaldefinitionoftelemedicinein
Ireland.TheEuropeanCommission
definestelemedicineas“theprovision
ofhealthcareservices,throughtheuse
ofICT,insituationswherethehealth
professionalandthepatient(ortwo
healthprofessionals)arenotinthesame
location.Itinvolvessecuretransmission
ofmedicaldataandinformation,through
text,sound,imagesorotherforms
neededfortheprevention,diagnosis,
treatmentandfollow-upofpatients”.1
TheIrishHealthServiceExecutiveand
theDepartmentofHealthhavepublished
similardefinitions.2
It is worth noting that phrases such as
“telemedicine” “eHealth”, “telehealth”,
“telecare”, and “connected health” are
all used interchangeably in this context.
This has only added to the uncertainty
surrounding the scope and nature of
telemedicine services.
HEALTHCARE SERVICES
It is well established that telemedicine
is a service and as such falls under
the provisions of the Treaty on the
Functioning of the European Union
(i.e. Article 56 – freedom to provide
services). This includes the freedom for
citizens to receive health services from
another Member State, regardless of
how the service is delivered, i.e. through
telemedicine.
Directive 2011/24/EU which was
transposed in Ireland by the European
Union (Application of Patients’ Rights
in Cross-Border Healthcare) Regulations
1. Communication on telemedicine for the ben-
efit of patients, healthcare systems and society,
COM(2008)689
2. eHealth Strategy for Ireland
2015 endorses the right that all EU
citizens are entitled to receive health
services from another Member State,
regardless of how the service is delivered,
i.e. through telemedicine. The 2015
Regulations came into operation in
Ireland on 1 June 2014.
Patients have the right to be reimbursed
for the provision of cross-border health
services, which includes cross-border
telemedicine services. However,
reimbursement will occur only if the
telemedicine service falls within the
range of healthcare services to which
citizens are entitled in the Member State
of affiliation. Ireland is the Member
State of affiliation for persons insured
in Ireland who are receiving medical
treatment in another country.
Additionally, cross-border healthcare
is to be provided in accordance with
the legislation of the Member State
of treatment. For the purposes of the
2015 Regulations, the provision of
telemedicine is considered to have taken
place in the Member State in which the
healthcare provider is established.
One issue that arises in this regard
is the recognition of professional
qualifications. In Ireland, the Medical
Practitioners Act, 2007 (as amended)
requires all medical practitioners
practicing in Ireland to be on the register
This document contains a general summary of developments and is not a complete or definitive statement of
the law. Specific legal advice should be obtained where appropriate.
LIFE SCIENCES
HEALTHCARE
2 | ARTHUR COX LEGAL LANDSCAPE STRUGGLES TO KEEP PACE
WITH THE RISE OF TELEMEDICINE
maintained by the Medical Council
of Ireland. However, according to the
Directive and the 2015 Regulations, a
healthcare provider providing treatment
outside Ireland to patients in Ireland
is considered to be providing medical
treatment in the Member State in which
he or she is established. As such, the
medical practitioner would not need to
be registered with the Medical Council,
as he or she would not be providing
treatment in Ireland.
MEDICAL DEVICES LEGISLATION
The provision of telemedicine services
may also evoke the application of the
EU medical devices legislation, namely
Directive 93/42/EEC, Directive 98/79/
EEC and Directive 90/385/EEC. This is
due to the fact that manufacturers of
mobile health applications and devices
that support telemedicine services
must comply with multiple, and often
conflicting, regulatory requirements
promulgated by various regulatory
authorities.
Qualification of a device or software as
a medical device can trigger a number
of related regulatory requirements.
These include conducting clinical
investigations on the device, undergoing
a conformity assessment procedure and
CE marking the device.
Software embedded or incorporated
into medical hardware (e.g. software
that controls a CT scanner) is deemed
to be a medical device as it is an integral
part of the medical device. By contrast,
“standalone software” such as medical
health apps will be considered a
medical device only if it has a “medical
purpose”. Pursuant to Directive
93/42/EEC, standalone software has a
“medical purpose” if it is intended by
the manufacturer to be used for the
purposes of:
“diagnosis, prevention, monitoring,
treatment or alleviation of disease;
diagnosis, monitoring, treatment,
alleviation of, or compensation for, an
injury or handicap;
investigation, replacement or
modification of the anatomy or of a
physiological process; or
control of conception.”
The information in the instructions for
use, labelling and promotional materials
related to the device is important
when determining the manufacturer’s
intended purpose.
Software that monitors a patient and
collects information entered by the user,
measured automatically by the app or
collected by a point of care device may
qualify as a medical device if the output
affects the treatment of an individual. On
the other hand, software that provides
general information but does not
provide personalised advice, although
it may be targeted to a particular user
group, is unlikely to be considered a
medical device.
Manufacturers should consult the
various guidelines issued by the
regulatory authorities (including
the Irish Health Products Regulatory
Authority and the European
Commission) on the qualification and
classification of standalone software to
see if your software is in fact a medical
device or an in vitro diagnostic device.
DATA PROTECTION
The processing of personal data,
including personal health data, is
governed by the Data Protection
Directive 95/46/EC, which is transposed
in Ireland through the Data Protection
Acts 1988 and 2003. The processing of
sensitive information such as health
information is subject to stricter
requirements than other types of
personal data.
Directive 95/46/EC does not define
health data. However, according to the
Article 29 Working Party, which includes
representatives of the national data
protection authorities in the EU, health
data is not only data which is inherently
or clearly medical data, but also includes
raw sensor data which can be used in
combination with other data to draw
conclusions about the health status or
risk of a person, irrespective of whether
these conclusions are inaccurate,
illegitimate or inadequate. Thus, while
an app that tracks an individual’s steps
during a given day may not provide
significant substance with regard
to a person’s health, it may provide
information on a health condition when
analysed in combination with other
relevant personal information.
The processing of health data is
prohibited unless it can meet one of
the permitted exemptions in Directive
95/46/EC, which includes obtaining
the explicit consent of the relevant
individual. There are also other
requirements beyond the need to
obtain consent. All personal data must
be processed fairly and lawfully and
collected solely for specified, explicit
and legitimate purposes. Appropriate
technical and organisational measures
must be implemented to ensure the
security and confidentiality of the data.
It should be noted that the new EU
General Data Protection Regulation
(“GDPR”) will replace the existing
Directive 95/45/EC, with a more
harmonised approach to data protection
across the EU. As a regulation, the
GDPR will be directly applicable in the
member states, without the need for any
implementing legislation.
The new safeguards adopted by the
regulation will include the obligation
on controllers to introduce data
protection by design and default into
their processing systems. They will also
be obliged to produce a data protection
impact assessment (“DPIA”) where
proposed data processing is likely to
result in a high risk to the rights and
freedoms of individuals. It is important
to note that a DPIA is not mandatory
when doctors or healthcare professionals
process health data concerning their
patients. Additionally, the Irish Data
Protection Commissioner is permitted
to publish a list of processing operations
that do not require a DPIA. Many
organisations using health data may,
therefore, need to carry out DPIAs before
processing personal health data.
Dublin
+353 1 618 0000
dublin@arthurcox.com
Belfast
+44 28 9023 0007
belfast@arthurcox.com
London
+44 207 832 0200
london@arthurcox.com
New York
+1 212 782 3294
newyork@arthurcox.com
Silicon Valley
+1 650 943 2330
siliconvalley@arthurcox.com
arthurcox.com
LIFE SCIENCES
HEALTHCARE
3 | ARTHUR COX LEGAL LANDSCAPE STRUGGLES TO KEEP PACE
WITH THE RISE OF TELEMEDICINE
CONCLUSION
While telemedicine has obvious
benefits such as improving patient
care and healthcare system efficiency,
a fragmented legal landscape which
involves compliance with the various
different legal regimes discussed above
could hinder such benefits.
Companies offering telemedicine
services must keep this in mind and take
a holistic approach when navigating
the relevant legal and regulatory
requirements. Getting the key players
involved at this early stage will also
help identify any gaps in assessment.
As telemedicine is a moving target,
companies should also keep a dialogue
with the relevant regulatory authorities
to confirm whether the authorities are
drafting or preparing any guidance that
might be relevant.
ARTHUR COX - KEY CONTACTS
COLIN KAVANAGH
PARTNER
+353 1 618 0548
colin.kavanagh@arthurcox.com
CIARA FARRELL
SENIOR ASSOCIATE
+353 1 779 4368
ciara.farrell@arthurcox.com
OLIVIA MULLOOLY
ASSOCIATE
+353 1 618 1160
olivia.mullooly@arthurcox.com
ORLA KEANE
PARTNER
+353 1 618 0434
orla.keane@arthurcox.com

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Legal-landscape-struggles-to-keep-pace-with-the-rise-of-Telemedicine

  • 1. LIFE SCIENCES HEALTHCARE 1 | ARTHUR COX Legal landscape struggles to keep pace with the rise of Telemedicine Group Briefing July 2016 Telemedicine encompasses a wide variety of services such as teleconsultation, telemonitoring and telesurgery. Telemedicine can also include remote consultation/e-visits or video conferences between health professionals and can be delivered through various forms of IT systems including mobile phone apps. It is this complexity in delivery that causes headaches for the legal landscape due to the interplay between the regulation of healthcare services, medical devices, intellectual property and data protection when offering telemedicine services. DEFINITION AND SCOPE OF TELEMEDICINE Thenatureandscopeoftelemedicine canbesomewhatdifficulttodefine.At present,mostEuropeanUnionMember Stateshavenotadoptedlegalinstruments specificallyregulatingtelemedicine, includingIreland.Therefore,thereis nolegaldefinitionoftelemedicinein Ireland.TheEuropeanCommission definestelemedicineas“theprovision ofhealthcareservices,throughtheuse ofICT,insituationswherethehealth professionalandthepatient(ortwo healthprofessionals)arenotinthesame location.Itinvolvessecuretransmission ofmedicaldataandinformation,through text,sound,imagesorotherforms neededfortheprevention,diagnosis, treatmentandfollow-upofpatients”.1 TheIrishHealthServiceExecutiveand theDepartmentofHealthhavepublished similardefinitions.2 It is worth noting that phrases such as “telemedicine” “eHealth”, “telehealth”, “telecare”, and “connected health” are all used interchangeably in this context. This has only added to the uncertainty surrounding the scope and nature of telemedicine services. HEALTHCARE SERVICES It is well established that telemedicine is a service and as such falls under the provisions of the Treaty on the Functioning of the European Union (i.e. Article 56 – freedom to provide services). This includes the freedom for citizens to receive health services from another Member State, regardless of how the service is delivered, i.e. through telemedicine. Directive 2011/24/EU which was transposed in Ireland by the European Union (Application of Patients’ Rights in Cross-Border Healthcare) Regulations 1. Communication on telemedicine for the ben- efit of patients, healthcare systems and society, COM(2008)689 2. eHealth Strategy for Ireland 2015 endorses the right that all EU citizens are entitled to receive health services from another Member State, regardless of how the service is delivered, i.e. through telemedicine. The 2015 Regulations came into operation in Ireland on 1 June 2014. Patients have the right to be reimbursed for the provision of cross-border health services, which includes cross-border telemedicine services. However, reimbursement will occur only if the telemedicine service falls within the range of healthcare services to which citizens are entitled in the Member State of affiliation. Ireland is the Member State of affiliation for persons insured in Ireland who are receiving medical treatment in another country. Additionally, cross-border healthcare is to be provided in accordance with the legislation of the Member State of treatment. For the purposes of the 2015 Regulations, the provision of telemedicine is considered to have taken place in the Member State in which the healthcare provider is established. One issue that arises in this regard is the recognition of professional qualifications. In Ireland, the Medical Practitioners Act, 2007 (as amended) requires all medical practitioners practicing in Ireland to be on the register This document contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
  • 2. LIFE SCIENCES HEALTHCARE 2 | ARTHUR COX LEGAL LANDSCAPE STRUGGLES TO KEEP PACE WITH THE RISE OF TELEMEDICINE maintained by the Medical Council of Ireland. However, according to the Directive and the 2015 Regulations, a healthcare provider providing treatment outside Ireland to patients in Ireland is considered to be providing medical treatment in the Member State in which he or she is established. As such, the medical practitioner would not need to be registered with the Medical Council, as he or she would not be providing treatment in Ireland. MEDICAL DEVICES LEGISLATION The provision of telemedicine services may also evoke the application of the EU medical devices legislation, namely Directive 93/42/EEC, Directive 98/79/ EEC and Directive 90/385/EEC. This is due to the fact that manufacturers of mobile health applications and devices that support telemedicine services must comply with multiple, and often conflicting, regulatory requirements promulgated by various regulatory authorities. Qualification of a device or software as a medical device can trigger a number of related regulatory requirements. These include conducting clinical investigations on the device, undergoing a conformity assessment procedure and CE marking the device. Software embedded or incorporated into medical hardware (e.g. software that controls a CT scanner) is deemed to be a medical device as it is an integral part of the medical device. By contrast, “standalone software” such as medical health apps will be considered a medical device only if it has a “medical purpose”. Pursuant to Directive 93/42/EEC, standalone software has a “medical purpose” if it is intended by the manufacturer to be used for the purposes of: “diagnosis, prevention, monitoring, treatment or alleviation of disease; diagnosis, monitoring, treatment, alleviation of, or compensation for, an injury or handicap; investigation, replacement or modification of the anatomy or of a physiological process; or control of conception.” The information in the instructions for use, labelling and promotional materials related to the device is important when determining the manufacturer’s intended purpose. Software that monitors a patient and collects information entered by the user, measured automatically by the app or collected by a point of care device may qualify as a medical device if the output affects the treatment of an individual. On the other hand, software that provides general information but does not provide personalised advice, although it may be targeted to a particular user group, is unlikely to be considered a medical device. Manufacturers should consult the various guidelines issued by the regulatory authorities (including the Irish Health Products Regulatory Authority and the European Commission) on the qualification and classification of standalone software to see if your software is in fact a medical device or an in vitro diagnostic device. DATA PROTECTION The processing of personal data, including personal health data, is governed by the Data Protection Directive 95/46/EC, which is transposed in Ireland through the Data Protection Acts 1988 and 2003. The processing of sensitive information such as health information is subject to stricter requirements than other types of personal data. Directive 95/46/EC does not define health data. However, according to the Article 29 Working Party, which includes representatives of the national data protection authorities in the EU, health data is not only data which is inherently or clearly medical data, but also includes raw sensor data which can be used in combination with other data to draw conclusions about the health status or risk of a person, irrespective of whether these conclusions are inaccurate, illegitimate or inadequate. Thus, while an app that tracks an individual’s steps during a given day may not provide significant substance with regard to a person’s health, it may provide information on a health condition when analysed in combination with other relevant personal information. The processing of health data is prohibited unless it can meet one of the permitted exemptions in Directive 95/46/EC, which includes obtaining the explicit consent of the relevant individual. There are also other requirements beyond the need to obtain consent. All personal data must be processed fairly and lawfully and collected solely for specified, explicit and legitimate purposes. Appropriate technical and organisational measures must be implemented to ensure the security and confidentiality of the data. It should be noted that the new EU General Data Protection Regulation (“GDPR”) will replace the existing Directive 95/45/EC, with a more harmonised approach to data protection across the EU. As a regulation, the GDPR will be directly applicable in the member states, without the need for any implementing legislation. The new safeguards adopted by the regulation will include the obligation on controllers to introduce data protection by design and default into their processing systems. They will also be obliged to produce a data protection impact assessment (“DPIA”) where proposed data processing is likely to result in a high risk to the rights and freedoms of individuals. It is important to note that a DPIA is not mandatory when doctors or healthcare professionals process health data concerning their patients. Additionally, the Irish Data Protection Commissioner is permitted to publish a list of processing operations that do not require a DPIA. Many organisations using health data may, therefore, need to carry out DPIAs before processing personal health data.
  • 3. Dublin +353 1 618 0000 dublin@arthurcox.com Belfast +44 28 9023 0007 belfast@arthurcox.com London +44 207 832 0200 london@arthurcox.com New York +1 212 782 3294 newyork@arthurcox.com Silicon Valley +1 650 943 2330 siliconvalley@arthurcox.com arthurcox.com LIFE SCIENCES HEALTHCARE 3 | ARTHUR COX LEGAL LANDSCAPE STRUGGLES TO KEEP PACE WITH THE RISE OF TELEMEDICINE CONCLUSION While telemedicine has obvious benefits such as improving patient care and healthcare system efficiency, a fragmented legal landscape which involves compliance with the various different legal regimes discussed above could hinder such benefits. Companies offering telemedicine services must keep this in mind and take a holistic approach when navigating the relevant legal and regulatory requirements. Getting the key players involved at this early stage will also help identify any gaps in assessment. As telemedicine is a moving target, companies should also keep a dialogue with the relevant regulatory authorities to confirm whether the authorities are drafting or preparing any guidance that might be relevant. ARTHUR COX - KEY CONTACTS COLIN KAVANAGH PARTNER +353 1 618 0548 colin.kavanagh@arthurcox.com CIARA FARRELL SENIOR ASSOCIATE +353 1 779 4368 ciara.farrell@arthurcox.com OLIVIA MULLOOLY ASSOCIATE +353 1 618 1160 olivia.mullooly@arthurcox.com ORLA KEANE PARTNER +353 1 618 0434 orla.keane@arthurcox.com