Founder of Telehealth Company Highlights Importance of Business Acumen in Legal Counsel for Success
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Founder of Telehealth Company Highlights Importance of Business Acumen in Legal Counsel for Success

Warshaw Burstein shared the testimonial of Newell Crane, PhD, a client who credits the legal and significant business experience of partner Murray D. Schwartz as a critical reason why his nascent telehealth company was prepared as the COVID-19 pandemic catalyzed a surge in virtual mental health care needs across the country. 
Dr. Crane founded his business, e-Virtual Care, in 2018. It is now one of the fastest-growing businesses in the telehealth industry, with more than one million patients and contracts out for an additional three million patients.

The company provides telehealth management for psychiatric and behavioral healthcare by enabling patients to receive live, video treatment by duly licensed psychiatric and therapeutic clinicians. Improving patient access and delivery of care by reducing the need for in-person visits helps ensure patients receive care when and where they need it. 
Dr. Crane said, “I am what some would call a ‘serial entrepreneur,’ so I understand the value of putting together a smart team to make a new business work. From the start, Murray provided wide-ranging legal advice that was invaluable, from guiding us through contract writing and employment negotiations to navigating government regulations to seeing around corners to advise us on differences in state law regarding the corporate practice of medicine. But his ability to help me build this business by having an understanding of how the business world works, and using that ability to help me trouble shoot related challenges is what made the difference.”
Some specific examples of the ways in which Mr. Schwartz and Warshaw Burstein assisted e-Virtual Care include:
  • Becoming conversant in state corporate practice of medicine prohibitions, state licensing requirements and credentialing and in state rules regarding use of nurse practitioners both in the amount of supervision required and the range of prescriptions they can write. States also vary in requiring in office visits before allowing telehealth psychiatric care. Analysis was required in every state in which telehealth practice permits the company to expand its reach.
  • Advising and commenting on marketing materials created to raise capital, to consider variations in state laws.
  • Ensuring various payor contracts had to consider practice protocols that considered the virtual nature of the business.
  • Ensuring employment and recruitment of providers had to consider virtual both in drafting employment terms and in expanded credentialing.
  • Reprogramming business office practices to provide for virtual codes for payors and insurers.
  • Reconsidering technology to ensure it could handle virtual visits, pricing and billing and remain HIPPA compliant. E.g.: Zoom and Blue Jeans videoconferencing software do not meet HIPPA compliance regulations unless upgraded.
  • And, Mr. Schwartz also advised the company on raising capital, hired an investment banker, brought in staff to create marketing materials, and identified, negotiated with and ultimately hired a well-qualified CEO, and other key personnel.

In the current and post-COVID environment, a significant increase in the use of telehealth, particularly for mental and behavioral health, is expected as patients fear in-person medical visits and prefer telehealth technology. e-Virtual Care partners with healthcare systems, employers, and insurance companies to fill the unmet needs of patients across the U.S. market.
“Our plans we were already in motion when the pandemic hit, but Murray continued to make the connections we needed at the start of the crisis, so that our business was, and will continue to be, well-positioned to meet the growing need in the marketplace,” Dr. Crane said. 
Mr. Schwartz said, “Virtual psychiatry is a brave new world from the legal perspective. Our firm’s contribution consisted of a very focused yet wide-ranging advisory effort, which brought the company up-to-speed and well-informed on several regulatory fronts. This enabled us to craft legal documents consistent with the current climate, and to do an informed review of payor and insurance contracts. We also advised the company as it brought in investors, an investment banker and other key personnel, including the CEO.”
“Finding innovative legal and operating solutions to our clients’ challenges requires us to think out of the box, which is encouraged and supported at our firm,” Warshaw Burstein Managing Partner, Frederick R. Cummings, Jr., said. “We have certainly met that goal in this case. It is always gratifying to hear from a happy client, and I look forward to e-Virtual Care’s continued success.”
Murray Schwartz combines more than 20 years’ experience in the corporate area with 15 years’ experience as a chief operating officer of a $700,000,000 media company.
He serves several companies as their regular corporate counsel and provides advice on myriad issues, including real estate, employment, trademark and copyright licensing. In addition, Mr. Schwartz counsels his operating company clients in connection with mergers and acquisitions, and his real estate clients on financings of both debt and equity transactions. He represents designer, sports figure and entertainment clients on trademark and copyright issues. Mr. Schwartz works very closely with clients, typically becoming involved at the earliest states of transactions, thereby facilitating more successful outcomes.
About e-Virtual Care
e-Virtual Care provides psychiatric and psychological services to patients in Ohio and surrounding Midwest states from their network of more than 50 virtual sites. e-Virtual Care provides tele-psychiatric and medical management expertise with an extensive, dedicated staff of psychiatrists and psychiatric nurse practitioners who are leaders in diagnosing, treating and researching mental and behavioral illness. Our clinicians have a commitment to provide comprehensive care, improve mental health wellness and the effectiveness of treatments within today’s psychiatric care environment. For more information, visit:
Warshaw Burstein, LLP is a full-service law firm in New York City with roots dating back to 1927. It has distinguished itself through superior and cost-effective legal service and personalized client care and attention. For more information visit @warshawburstein on LinkedIn and Twitter.