MACDONALD v. SABANDO

District Court, D. New Jersey·Decided May 12, 2025·No. 1:23-cv-23044·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SHANNON MACDONALD, et al., Case No. 23–cv–23044–ESK–EAP Plaintiffs,

v. OPINION OTTO F. SABANDO, Defendant. KIEL, U.S.D.J. THIS MATTER is before the Court on defendant Otto F. Sabando’s motion to dismiss. (ECF No. 23.) For the following reasons, the motion will be GRANTED. I. BACKGROUND A. Telemedicine in New Jersey Pursuant to N.J. Stat. Ann. § (Section) 45:1–62(b), any healthcare provider who utilizes telemedicine or engages in telehealth must be licensed, certified, or registered to provide such services in New Jersey. N.J. Stat. Ann. § 45:1– 62(b).1 Providers are further subject to state regulation and jurisdiction and

1 Those who hold a valid, current license in good standing in another state may obtain reciprocal licensure in New Jersey following the New Jersey State Board of Medical Examiners’ (the Board) receipt of a completed application, application fee, consent to a criminal background check, and fee for such background check. See N.J. Admin. Code § 13:35–3.2(a). This is so long as the Board determines that the licensing state has or had at the time of issuance substantially equivalent educational, training, and examination requirements as New Jersey, the applicant has been practicing for at least two years in the five years prior to their application, and additional requirements are met. Id. Such additional requirements consist of documentation indicating that the applicant’s license is in good standing, the applicant’s criminal background check does not disclose a conviction of a disqualifying crime, and designation of an agent in New Jersey for service of process “if the applicant is not a New Jersey resident and must comply with liability-insurance requirements. Id. Telehealth refers to “the use of information and communications technologies, including telephones, remote patient monitoring devices, or other electronic means, to support clinical health care, provider consultation, patient and professional health-related education, public health, health administration, and other services in accordance with” Section 45:1–61 et al. N.J. Stat. Ann. § 45:1–61. Telemedicine refers to “the delivery of a health care service using electronic communications, information technology, or other electronic or technological means to bridge the gap between a health care provider who is located at a distant site and a patient who is located at an originating site ….” Id.2 The unlicensed practice of medicine is a crime of the third degree. N.J. Stat. Ann. § 2C:21–20. Unlicensed practice is also subject to civil penalties of up to $10,000 for the first violation and up to $20,000 for each subsequent violation. N.J. Stat. Ann. § 45:1–25. At issue in this case is the effect of Section 45:1–62(b)’s licensure requirement on out-of-state specialists. B. The Complaint Plaintiff Shannon MacDonald, M.D. is a resident of Massachusetts and a board-certified radiation oncologist at Massachusetts General Hospital in Boston. (Compl. p. 5.) Plaintiff Paul Gardner, M.D. is a resident of Pennsylvania and the neurosurgical director of the Center for Cranial Base Surgery at the University of Pittsburgh Medical Center. (Id.) Defendant Otto F. Sabando was the president of the Board, which is responsible for

does not have an office in New Jersey.” Id. § 13:35–3.2(b). Therefore, and relevant to my analysis below, New Jersey law contemplates nonresidents obtaining licensure.

2 The complaint uses the term “telemedicine” to refer to both telemedicine and telehealth. (ECF No. 1 (Compl.) p. 7 n. 1.) Similarly, defendant uses the terms interchangeably unless otherwise specified in the moving brief. (ECF No. 23–1 (Def.’s Mot. Br.) p. 14 n. 2.) I adopt a similar convention and will use “telemedicine” to refer to both terms except where otherwise noted. medical licensure and regulation in New Jersey. (Id. p. 6.)3 He was sued in his official capacity. (Id.) When plaintiff J.A. was 18 months old, he was diagnosed with pineoblastoma and his father, plaintiff Michael Abell, called pediatric oncologists across the country to gauge J.A.’s treatment options. (Id. p. 11.) Multiple rounds of chemotherapy and two surgeries were unsuccessful and J.A.’s doctors referred him to Dr. MacDonald. (Id. pp. 11, 12.) After Dr. MacDonald reviewed J.A.’s records remotely and consulted with J.A.’s family via telemedicine, J.A.’s family traveled to Boston for successful proton therapy. (Id. p. 12.) J.A., now a teenager residing in New Jersey, must undergo annual scans for the rest of his life and he and his family will need the use of telemedicine to consult with Dr. MacDonald. (Id.) Similarly, plaintiff Hank Jennings was 19 years old when he was diagnosed with a rare tumor at the base of his skull and he and his family consulted with several out-of-state specialists using telemedicine. (Id. p. 13.) Jennings and his mother eventually relocated to Pittsburgh for him to undergo four surgeries and receive in-patient rehabilitation. (Id.) Though his treatment was successful, Jennings must periodically follow-up with Dr. Gardner4 and would need to travel to Pittsburgh if not for telemedicine, which allows him to follow-up with Dr. Gardner remotely from his dormitory or home in New Jersey. (Id. p. 14.)

3 Plaintiffs note that Sabando was replaced by S. Chetan Shah after this case commenced and that Shah is automatically substituted pursuant to Federal Rule of Civil Procedure 25(d). (ECF No. 32 (Pls.’ Apr. 8, 2025 Notice) p. 1 n. 1.) In any case, I simply refer to the movant as “defendant” here.

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