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KindlyMD submits comment to DOJ regarding cannabis rescheduling

KindlyMD has submitted a comment to the U.S. Department of Justice, following its recent proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act, consistent with the view of the Department of Health and Human Services that cannabis has a currently accepted medical use as well as HHS’s views concerning cannabis abuse potential and the level of physical or psychological dependence. KindlyMD CEO and Corporate Statement on Cannabis Reclassification: “KindlyMD welcomes the proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act. This reclassification represents significant progress in aligning federal policy with the growing recognition of the medical benefits of cannabis and the validity of the model of healthcare delivered by KindlyMD. However, it is important to clarify what this potential change does and does not mean for our industry. First and foremost, the reclassification does not make marijuana legal, as it remains an illegal substance under federal law. KindlyMD will continue to comply with all applicable federal laws relating to controlled substances, including the CSA, the Bank Secrecy Ac, and the Anti-Money Laundering prohibitions. The reclassification to Schedule III is expected to have several positive impacts on the medical cannabis industry. Most notably, it has the potential to reduce patient costs for medical cannabis products. Currently, plant-touching cannabis businesses cannot deduct many of their operating expenses, leading to inflated tax liabilities. The change to Schedule III will allow these businesses to deduct expenses more akin to standard business operations, potentially adding significant amounts to their balance sheets. Some of this savings is expected to pass through to patients in the form of lower cost for medicinal cannabis products. For example, some large operators could see more than $100 million added to their balance sheets, enabling them to reinvest in research and deliver consistent quality products across multiple states. Overall, the rescheduling of cannabis will create a more favorable business environment for KindlyMD and the patients we serve – with the potential to enable us to expand our services, reduce operational risks, and capitalize on new opportunities to enhance patient care and research. While this does not change the illegality of cannabis or change compliance requirements under federal law, the move to Schedule III represents progress. For KindlyMD, this reclassification underscores the continued relevance and importance of our integrated healthcare model. KindlyMD is among the leaders in providing medical evaluation and pain management services related to treatment recommendations within the medical cannabis program in Utah. KindlyMD healthcare professionals provide patients with medical cannabis education and information to help patients decide whether medical cannabis may be a beneficial alternative treatment option for them. The reclassification is likely to lead to increased access and utilization of medical cannabis among our patients, benefiting KindlyMD through improved patient outcomes, new educational opportunities, and enhanced financial stability.”

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