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How to Manage IT,
Telecommunications
Personal Data Rules and
Software Regulatory
Requirements in the EU and
Global Environment,
including Case Studies

Erik Vollebregt              25th Annual
Partner                      EuroMeeting
                                4-6 March 2013
Axon Lawyers                   RAI, Amsterdam
                                    Netherlands
Disclaimer
The views and opinions expressed in the following PowerPoint slides are
those of the individual presenter and should not be attributed to Drug
Information Association, Inc. (“DIA”), its directors, officers, employees,
volunteers, members, chapters, councils, Special Interest Area
Communities or affiliates, or any organization with which the presenter is
employed or affiliated.


These PowerPoint slides are the intellectual property of the individual
presenter and are protected under the copyright laws of the United
States of America and other countries. Used by permission. All rights
reserved. Drug Information Association, DIA and DIA logo are registered
trademarks or trademarks of Drug Information Association Inc. All other
trademarks are the property of their respective owners.




                                                                       2
Introduction


• EU political and regulatory context
• (health) data protection regulation
  developments
• Regulation of software as medical device
• Reimbursement, licensing
• Liability
• Case studies


                                             3
EU political background

• eHealth Action Plan 2012 – 2020
   – struggles with Lisbon competences (“EU
     action shall respect the responsibilities of the
     Member States for the definition of their
     health policy and for the organisation and
     delivery of health services and medical care.”)
• Pretty big changes in
   – regulation of medicinal products and medical
     devices / IVDs
   – regulation of collection and processing of
     health data
                                                    4
Health data protection


• Currently in flux with General Data
  Protection Regulation proposal
• Horizontal approach to all data causes
  excessive collateral damage in healthcare
  sector
   – What we hate in marketing and social media,
     we actually want in healthcare (e.g.
     monitoring, profiling, further processing,
     traceability)

                                                   5
General Data Protection Regulation

• Data protection as fundamental right
 •   EU approaches data protection from the angle of fundamental right – this means
     less attention to pure internal market interests and more to data subject interests


• Definitions & scope
 •   Implementation of Art 29 WP opinions on scope (“singling out”, unique identifiers,
     pseudomisation, “reasonably likely means”)


• Consent requirements
 •   New disqualifiers: imbalance and consent to process data and necessary for
     execution of the contract


• Impact assessment
 •   Mandatory sign-off national authorities prior to processing but no methodology /
     standards and no deadlines
 •   Impact assessment for each individual instance of processing

                                                                                           6
General Data Protection Regulation

• Privacy by design
 • Prior approval of impact assessment of each act of processing
 • Literally – Parliament proposes that software and devices have to be
   designed and built as to enable GDPR and data subject’s rights by default
 • Intelligible explanation of automated processing logic


• Exemptions for processing of health data without consent
 • With uncertainties around concept of ‘consent’ derogations for “public
   health” and “scientific purposes” become crucial
 • Exemptions not suited for outsourced processing in eHealth / mHealth
   services and not drafted for regulatory clinical data obligations


• Technical standards
 • Commission can issue technical standards related to implementation of
   GDPR requirements
                                                                               7
General Data Protection Regulation

• Data subject’s rights
 • Right to correct, information, be forgotten and of erasure problematic in
   clinical context
 • Right to request interoperable and open source format copy of processed
   data


• Company burden
 • Mandatory privacy officer
 • Large fines


• Many open ends still that are subject to implementation by
  implementing act or regulation by delegated act
 • Commission is not obliged to use these powers and EU legislator may
   change the scope or revoke power, which increases uncertainty


                                                                               8
Regulation of software as MD / IVD


• MEDDEV 2.1/6 on standalone software,
  currently under revision
• Differences in interpretation of what
  software constitutes a medical device
• EN 62304 standard
• Lack of harmonised
  interoperability standards



                                          9
Reimbursement


• Directive 2011/24/EU on the application of
  patients' rights in cross-border healthcare
  – Member State of affiliation shall ensure that
    the costs incurred by any insured person
    receiving cross-border healthcare are
    reimbursed, if the healthcare in question is
    among the benefits to which the insured
    person is entitled in the Member State of
    affiliation (Article 7(1) of the Directive)


                                                    10
Licensing


• Directive 2005/36/EC28 on the recognition of
  professional qualifications does not apply to
  healthcare professionals providing cross-border
  telemedicine
• if the service provider complies with the
  legislation applicable to the taking up and
  exercise of an information society service in his
  Member State of establishment, he will in
  principle be free to provide its services in other
  Member States (Cross-Border Patient Rights
  Directive and e-Commerce directive)
                                                       11
Liability


• Professional liability
• Contractual liability
• Defective product
    – Member states differ in whether e/mHealth
      software is a “product” under EU Product
      Liability Directive (85/374)
• Network outages?



                                                  12
Case study




             13
Case study




             14

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eHealth and mhealth presentation

  • 1. How to Manage IT, Telecommunications Personal Data Rules and Software Regulatory Requirements in the EU and Global Environment, including Case Studies Erik Vollebregt 25th Annual Partner EuroMeeting 4-6 March 2013 Axon Lawyers RAI, Amsterdam Netherlands
  • 2. Disclaimer The views and opinions expressed in the following PowerPoint slides are those of the individual presenter and should not be attributed to Drug Information Association, Inc. (“DIA”), its directors, officers, employees, volunteers, members, chapters, councils, Special Interest Area Communities or affiliates, or any organization with which the presenter is employed or affiliated. These PowerPoint slides are the intellectual property of the individual presenter and are protected under the copyright laws of the United States of America and other countries. Used by permission. All rights reserved. Drug Information Association, DIA and DIA logo are registered trademarks or trademarks of Drug Information Association Inc. All other trademarks are the property of their respective owners. 2
  • 3. Introduction • EU political and regulatory context • (health) data protection regulation developments • Regulation of software as medical device • Reimbursement, licensing • Liability • Case studies 3
  • 4. EU political background • eHealth Action Plan 2012 – 2020 – struggles with Lisbon competences (“EU action shall respect the responsibilities of the Member States for the definition of their health policy and for the organisation and delivery of health services and medical care.”) • Pretty big changes in – regulation of medicinal products and medical devices / IVDs – regulation of collection and processing of health data 4
  • 5. Health data protection • Currently in flux with General Data Protection Regulation proposal • Horizontal approach to all data causes excessive collateral damage in healthcare sector – What we hate in marketing and social media, we actually want in healthcare (e.g. monitoring, profiling, further processing, traceability) 5
  • 6. General Data Protection Regulation • Data protection as fundamental right • EU approaches data protection from the angle of fundamental right – this means less attention to pure internal market interests and more to data subject interests • Definitions & scope • Implementation of Art 29 WP opinions on scope (“singling out”, unique identifiers, pseudomisation, “reasonably likely means”) • Consent requirements • New disqualifiers: imbalance and consent to process data and necessary for execution of the contract • Impact assessment • Mandatory sign-off national authorities prior to processing but no methodology / standards and no deadlines • Impact assessment for each individual instance of processing 6
  • 7. General Data Protection Regulation • Privacy by design • Prior approval of impact assessment of each act of processing • Literally – Parliament proposes that software and devices have to be designed and built as to enable GDPR and data subject’s rights by default • Intelligible explanation of automated processing logic • Exemptions for processing of health data without consent • With uncertainties around concept of ‘consent’ derogations for “public health” and “scientific purposes” become crucial • Exemptions not suited for outsourced processing in eHealth / mHealth services and not drafted for regulatory clinical data obligations • Technical standards • Commission can issue technical standards related to implementation of GDPR requirements 7
  • 8. General Data Protection Regulation • Data subject’s rights • Right to correct, information, be forgotten and of erasure problematic in clinical context • Right to request interoperable and open source format copy of processed data • Company burden • Mandatory privacy officer • Large fines • Many open ends still that are subject to implementation by implementing act or regulation by delegated act • Commission is not obliged to use these powers and EU legislator may change the scope or revoke power, which increases uncertainty 8
  • 9. Regulation of software as MD / IVD • MEDDEV 2.1/6 on standalone software, currently under revision • Differences in interpretation of what software constitutes a medical device • EN 62304 standard • Lack of harmonised interoperability standards 9
  • 10. Reimbursement • Directive 2011/24/EU on the application of patients' rights in cross-border healthcare – Member State of affiliation shall ensure that the costs incurred by any insured person receiving cross-border healthcare are reimbursed, if the healthcare in question is among the benefits to which the insured person is entitled in the Member State of affiliation (Article 7(1) of the Directive) 10
  • 11. Licensing • Directive 2005/36/EC28 on the recognition of professional qualifications does not apply to healthcare professionals providing cross-border telemedicine • if the service provider complies with the legislation applicable to the taking up and exercise of an information society service in his Member State of establishment, he will in principle be free to provide its services in other Member States (Cross-Border Patient Rights Directive and e-Commerce directive) 11
  • 12. Liability • Professional liability • Contractual liability • Defective product – Member states differ in whether e/mHealth software is a “product” under EU Product Liability Directive (85/374) • Network outages? 12