MACDONALD v. SABANDO

CourtDistrict Court, D. New Jersey
DecidedMay 12, 2025
Docket1:23-cv-23044
StatusUnknown

This text of MACDONALD v. SABANDO (MACDONALD v. SABANDO) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MACDONALD v. SABANDO, (D.N.J. 2025).

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.

4 Defendant asserts that it is unclear from the complaint whether Dr. Gardner treats Jennings. (Def.’s Mot. Br. p. 17.) I agree that plaintiffs do not expressly state so but read the complaint as indicating that Jennings is Dr. Gardner’s patient. Plaintiffs explain that when a patient is referred to a specialist such as Drs. MacDonald or Gardner, it is often because their local physician lacks the expertise, experience, or resources to diagnose or treat their unique condition. (Id. p. 9.) After a referral is made to such a specialist, the specialist consults with the patient to confirm the diagnosis and determine whether the specialist can treat them. (Id.) New Jersey’s restrictions on telemedicine mean that patients seeking to consult with Drs. MacDonald or Gardner must decide whether to incur the cost of traveling to discuss potential treatment, a cost that is exacerbated when young patients must be accompanied by their parent or guardian. (Id.) Some patients are unable or elect not to travel and thus do not receive life-saving treatment from a specialist. (Id. pp. 9, 10.) Patients who ultimately receive out-of-state treatment may still require follow-up care and telemedicine may be used to monitor a patient’s progress without the need to travel. (Id. p. 10.) A patient may obtain a blood test, imaging, or the like at a local facility and have the corresponding data interpreted via telemedicine by an out-of-state specialist. (Id. pp. 10, 11.) New Jersey’s licensure requirement burdens specialists, according to plaintiffs. (Id. pp. 14–17.) Initial licensure costs $550; requires a background check, fingerprinting, significant documentation, and related costs; and takes an average of three months to process. (Id. p. 14.) The Interstate Medical Licensure Compact is intended to streamline the process but still requires $700 for participation, state fees, fingerprinting, and background checks and takes weeks to process. (Id. p. 15.) Maintaining licenses in multiple states is burdensome for Drs. MacDonald and Gardner, including applicable fees, monitoring renewal dates, and complying with state-specific requirements. (Id.) Such costs are disproportionately significant for specialists such as Drs.

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Bluebook (online)
MACDONALD v. SABANDO, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macdonald-v-sabando-njd-2025.