DEA’s Crackdown on Online Prescriptions Threatens Patients, Startups

DEA’s Crackdown on Online Prescriptions Threatens Patients, Startups
  • Thanks to the pandemic, doctors have been able to prescribe more kinds of drugs online.
  • One such drug is buprenorphine, a medication that treats opioid-use disorder. 
  • Proposed rules would put an end to that, making care for addiction harder to find.

For the past three years, doctors have been able to do something that’s normally illegal: prescribe potentially addictive medications, called controlled substances, to patients they see online.

Thanks to the public-health emergency, this temporary allowance — along with other loosened regulations — changed how providers deliver healthcare in the US. 

Startups pushed into the industry with renewed force, raising a record $59.3 billion from venture capitalists since 2020. 

Some startups went too far, harming patients. But many rose to prominence, at least in part, because of gaps in access to care. 

Addiction medicine is one such example. During the pandemic, patients with opioid-use disorders have been able to get prescriptions for buprenorphine, a controlled medication that curbs cravings, on devices with internet access. 

For some, telehealth advocates argue, it’s been an important lifeline given the fact that lethal overdoses are still outpacing care for addiction.

The COVID-related public-health emergency, and the loosened rules, are set to expire in May. How the government will account for what’s changed since 2020 will determine both how much mental-health care people can get online, and the fates of startups providing it.

Proposed rules would limit online addiction treatment

In February, the Drug Enforcement Administration, or DEA, published much-anticipated rules meant to set the record straight on online prescribing. The rules, if implemented, generally don’t allow providers to prescribe controlled medications online if they don’t see the patients in person.

For buprenorphine and other drugs, there’s an exception that would allow for initial 30-day prescriptions for online patients. But to continue, they would have to get in-person exams.

Those who started any controlled drugs online during the pandemic would have an extra 180 days to find an in-person provider. 

The rules are far more limiting than the industry anticipated. 

“We want to keep our patients happy, we want to keep our clinicians happy, we want to be compliant, and we want to be able to keep the business sustainable,” Zack Gray, a cofounder and the CEO of the addiction-treatment startup Ophelia Health, said. “But all of those things together can be very challenging, and it becomes even more challenging when the government introduces additional arbitrary requirements.”

Some patients are flights away from in-person care

For some patients, especially in rural areas, in-person appointments are hard to find.

Last year, Alabama passed a new law prohibiting providers from prescribing controlled drugs to patients they hadn’t seen in person within the past year. 

The change sent Bicycle Health scrambling. At the time, the startup was treating about 500 Alabama residents online with buprenorphine, Ankit Gupta, the founder and CEO of Bicycle Health, said. 

Bicycle flew in a few providers to take emergency appointments in Birmingham, Alabama. Gupta estimated that 300 patients were able to see Bicycle’s providers, 100 were able to switch to clinics, and 100 were left without care. 

Stopping buprenorphine treatment can lead to withdrawal symptoms and put people at risk of relapsing.

Ankit Gupta, the CEO of Bicycle Health.

Ankit Gupta, the CEO of Bicycle Health.

Bicycle Health



A tiny Alaskan fishing village just off the coast of Russia relies somewhat heavily on the startup Boulder Care for buprenorphine treatment, Stephanie Strong, the founder and CEO of Boulder Care, said. 

People there share WiFi to see Boulder’s providers, and the startup works with a mainland pharmacy to fly them medication.

If the proposed DEA rules take effect, these folks would have to take multiple flights to Anchorage, Alaska, to see the nearest addiction-treatment provider, Strong said.

Primary-care offices are backed up

It’s not easy to find providers who will treat opioid addiction. Until recently, prescribing buprenorphine required a special DEA credential. As of 2022, only about 9{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} of licensed physicians had it. President Biden eliminated that credential in December.

But studies suggest primary-care providers are reluctant to treat addiction patients in part because of capacity, stigma, lack of experience, and costs. Past efforts to clear the way with regulations haven’t worked.

And for new patients, the average wait time to see a primary-care doctor is 26 days, suggesting patients with 30-day buprenorphine prescriptions could struggle to find appointments in time to refill them. 

More than 40{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} of patients at Bicycle and most patients at Boulder and Ophelia, which collectively treat about 23,000 patients, don’t have primary-care physicians, their CEOs said.

The DEA’s proposals say that patients with online-buprenorphine prescriptions can get their in-person visits with providers who refer them back to their telehealth doctors.

Bicycle is talking to companies like Optum and CVS to set up easy-referral processes, but it’s unclear what will come of it, Gupta said. 

“Regardless of the network Bicycle creates, there will be a large population of patients who would not be able to comply,” he said, citing physical and financial barriers. 

Stephanie Strong, the CEO of Boulder Care.

Stephanie Strong, the CEO of Boulder Care.

Boulder Care



The risks of controlled drugs

Buprenorphine has two forms. Patients can take it by itself, or take it combined with naloxone. Both are “very effective” at treating opioid-use disorder, the DEA said. 

As a partial-opioid agonist, it only partially activates opioid receptors in the brain, reducing cravings and the possibility of overdosing.

Bottles of the generic form of the prescription-pain medication buprenorphine.

Bottles of the generic form of the prescription-pain medication buprenorphine.

Getty Images



But controlled substances come with risks of addiction. Buprenorphine can technically get people high, so there is a fear that some patients could misuse and sell it. 

“I think these proposals represent important guardrails on prescribing of controlled substances that are vital to protecting the public health,” Anna Lembke, a professor of psychiatry and addiction medicine at Stanford University, said of the DEA’s proposed rules. 

Still, the medication was involved in just 2.6{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} of opioid-related overdose deaths from July 2019 to June 2021. The frequency of prescriptions for it have not shot up since the start of the pandemic.

Bicycle, Ophelia, and Boulder use urine testing to make sure that patients are taking their medication as prescribed. 

Before starting treatment with Ophelia, 81{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} of surveyed patients were misusing drugs, including illegal buprenorphine, Gray said. Six months in, only 3.3{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} of surveyed patients were.

Zack Gray, the CEO of Ophelia Health.

Zack Gray, the CEO of Ophelia Health.

Ophelia Health



Finding a path forward

There are a number of ways the government could proceed.  

Nate Lacktman, a healthcare lawyer, wants the DEA to adjust the rules, then tackle a special-registration process for telehealth that it’s been required to make for a long time.

The registration would permit providers to prescribe controlled substances online, while creating a central hub through which the providers can be monitored, he said.

Others, like the American Telehealth Association, have asked Congress to extend online-controlled-drug prescribing through the end of 2024, like it did for other forms of telehealth. 

Some advocates have appealed directly to President Joe Biden. He could declare the opioid crisis a public-health emergency, allowing online-buprenorphine prescribing to continue. Or he could make drug control a Cabinet-level position, allowing for more resources and teamwork. 

“We need coordination here,” Patrick Kennedy, a mental-health advocate and former lawmaker, said, adding: “The DEA has a role to play, but it needs to find its own lane.” 

The simplest solution could be to give patients more time to find in-person appointments.

The DEA’s deadline for the public to comment on the rules is March 31. 

Senators probe telehealth startups’ healthcare data sharing practices

Senators probe telehealth startups’ healthcare data sharing practices

A team of senators sent letters to three telehealth startups — Monument, Workit Well being and Cerebral — to ask for far more facts on how these firms are sharing their consumer overall health information. 

The probe comes as the senators express worry that these organizations could be tracking and sharing their customers’ individually identifiable wellness knowledge with social media platforms for marketing needs, in accordance to a Feb. 7 letter signed by U.S. Sens. Amy Klobuchar, D-Minn., Susan Collins, R-Maine, Maria Cantwell, D-Clean., and Cynthia Lummis, R-Wyo.

“Modern experiences emphasize how your corporation shares users’ get in touch with data and health and fitness care data that need to be confidential…this data is reportedly sent to promoting platforms, together with the data needed to recognize customers. This facts is incredibly private, and it can be employed to target adverts for products and services that may perhaps be avoidable or most likely harmful physically, psychologically, or emotionally,” the senators wrote to Cerebral CEO David Mou, MD, Monument CEO Mike Russell, and Workit Health and fitness CEO Robin McIntosh.

A Cerebral spokesperson told Becker’s in an emailed statement, “We take affected individual privacy pretty very seriously and share the Senators’ feelings about the great importance of privacy of patient data. We are doing work diligently to reply their important thoughts and are in the method of responding. We continue to be committed to doing the job with other accountable functions to establish distinct tips concerning the evolving technologies that increase the shipping of psychological overall health care.”

A Workit Overall health agent also told Becker’s that safeguarding its members’ privacy is the firm’s prime precedence. 

“We enjoy the Senate’s notice to the way tracking systems are used in digital health, as privacy is a main component of our ethos, and a single of the explanations our co-founders produced a discreet, on the net method. This letter generates an possibility to broach a conversation far more broadly about common business procedures in health care at big, and we are responding to the letter with the attentive diligence it demands,” the agent wrote to Becker’s. 

Monument did not react to Becker’s request for remark. 

This transfer will come shortly just after the Federal Trade Fee proposed a $1.5 million settlement with GoodRx Holdings for allegedly sharing patient knowledge to promote on Facebook and Google.

The Impact of Apple’s Health Rollout on Women’s Health Startups

The Impact of Apple’s Health Rollout on Women’s Health Startups
  • The Apple Enjoy Sequence 8 has extra new women’s health and fertility-tracking attributes.
  • The tech giant’s moves into women’s well being coincides with a funding winter season for startups in the sector.
  • Insider spoke to VCs about the difficulties and prospects this produces for women’s wellness startups. 

When Apple rolled out the Apple Look at Sequence 8 in September this yr, it cemented its increasing footprint in the world wide women’s overall health market. 

With new system sensor options, buyers can measure additional granular changes in their fertility cycles, from temperature rises during ovulation to deviations in their cycle through in excess of a period of time of time. 

The aim is to give people a additional consolidated perspective of their overall health info, an Apple representative claimed — but it is a action that could spell difficulties for women’s overall health startups. 

“For consumer-grade wearables made use of for lifestyle and wellbeing, the dominance of Apple is rather undisputed regarding style and design and distribution,” explained Andrea Zitna, spouse at Speedinvest who specializes in health startups. She “would not be tempted to make investments” in a wearables startup if it was touting just a wellness service that Apple also offered. 

The tech huge dominates the global wearables field, with its 30{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} industry share considerably exceeding its nearest rival Samsung, according to IDC. The agency also quietly acquired asthma-monitoring startup Tueo Well being in 2018 to bolster its wellbeing ambitions. (Apple declined to comment on its acquisition strategy for startups, but a agent said it has established more avenues for collaboration with startups by making its HealthKit facts obtainable to exterior corporations, with users’ consent.)

“If you are a distinct provider, or a wearables machine to observe women’s wellness, you’d be pretty fearful,” said Andrew Elder, healthcare lover at AlbionVC. “These startups are likely to have a tricky time.”

There is also the aftermath of overturning Roe v. Wade, which has still left customers far more vigilant about sharing sensitive fertility knowledge with period of time-monitoring applications — some of which could compete with Apple for buyers. Not too long ago, 18 time period-monitoring startups, which includes Flo, Clue, and Glow, came below fireplace from browser-maker Mozilla for not sufficiently safeguarding client information, which could depart its customers susceptible to acquiring their details shared with legislation enforcement. 

German startup Clue advised Insider that it understood that quite a few of its American end users are fearful that their tracked knowledge could be used in opposition to them by US prosecutors, and confirmed that it is “obligated below European GDPR to utilize special protections to this sort of wellbeing facts”, and to de-determine any well being facts which is utilized for scientific investigation.

A agent from London-primarily based Flo, which has all over 48 million month-to-month end users, advised Insider that it lately unveiled an ‘Anonymous Mode’ update, which consumers would have to decide in to activate. When the app would have to comply with any genuine law enforcement requests to hand around facts, anonymizing user details would make it difficult to comply with a subpoena, the consultant added.

Apple, which frequently touts its approach to user privateness as a special marketing position, told Insider that all health data is encrypted on gadget. As most people have enabled two-issue authentication, Apple can’t go through or entry their person information, a representative claimed.

Funding into women’s wellbeing has taken a dip

The tech giant’s expanding power in health and fitness arrives at a time when its clear rivals — purchaser women’s wellness startups — are emotion the tech downturn. 

Startups in the sector have beforehand had problems raising the very same degree of funding as their counterparts in electronic therapeutics and telemedicine, according to Dealroom information. A pandemic-fueled desire for digital clinics and distant fertility solutions briefly modified that,  with with femtech startups securing a report $2.5 billion in 2021 globally.

But the boom was small lived. Funding into the sector dropped 68{35112b74ca1a6bc4decb6697edde3f9edcc1b44915f2ccb9995df8df6b4364bc} by 2022 — the steepest of any sector, bar pediatrics and property living, in accordance to Dealroom. VCs are also investing a lot more cautiously in immediate-to-consumer (typically known as D2C) femtech, a sector which is disproportionately afflicted for the duration of recessions and downturns.

Amid a risky financial setting for the women’s health sector, coupled with Apple’s growing dominance in the exact same current market, traders are bracing for a “double-edged affect on startups,” said Elder. On the additionally aspect, Apple’s involvement will probably raise “recognition and adoption” for the sector as a total. Apple has also knowledgeable worries trying to outcome its grand eyesight to reinvent health care, Insider’s Blake Dodgson noted in 2021, pointing to substantial-stage resignations and worker dissatisfaction at the time.

Startups that do well may perhaps be the types that keep specialized niche, in accordance to Dr. Fiona Pathiraja, taking care of partner of Crista Galli Ventures. Communities for end users dealing with sure ailments such as menopause or PCOS, startups with a aim “are meeting a have to have which Apple just isn’t,” she explained.

Clelia Morales, cofounder of fertility application Woom, mentioned the advancement of the ecosystem would create “more substantial possibilities for end users and companies, as properly as their founders.”

But, she added, founders need a differentiator to established them aside from rivals, pointing to Woom’s social characteristics. “So considerably we haven’t seen a decrease in the selection of users,” she extra. 

Making clinically sturdy datasets, and differentiating by themselves via the science and scientific method would also give startups a “headstart”, mentioned Elder, who famous that “Apple is not nonetheless there in terms of acquiring [health services] as clinical-grade features — and it truly is not simple to make these clinical-quality approvals.”

Correction, December 8, 2022: This tale has been updated to involve an Apple representative’s opinions on encrypting wellbeing facts. A preceding edition claimed the corporation had declined to comment.