During the COVID-19 pandemic, telehealth saw a significant rise in demand. According to the Centers for Disease Control and Prevention (CDC), telehealth visits increased by 154% in 2020 alone.
Telehealth services quickly became essential in healthcare, allowing doctors to continue offering clinical services remotely. Through telemedicine, medical practitioners have been able to diagnose and treat patients from a distance, ensuring they receive necessary care from the comfort and safety of their own homes. This has been especially important for individuals with pre-existing conditions who may face higher risks in traditional healthcare settings.
Telehealth has proven to be a lasting solution, with 48% of physicians in the United States now offering telemedicine services. Patients appreciate the convenience of telehealth appointments, and healthcare providers have found success in integrating these services into their practices. Starting a telemedicine business taps into this growing demand, as the need for flexible, remote healthcare options is expected to continue well beyond the pandemic.
What is Telehealth?
Telehealth is about using technology to deliver healthcare remotely, allowing patients to consult with doctors through video calls, phone calls, or secure messaging. As a business, telehealth opens the door for healthcare providers to offer their services in a more flexible, convenient way, meeting patients where they are.
Starting a telehealth business means offering a solution that’s in demand, especially as more people look for convenient ways to get healthcare. From virtual check-ups to remote monitoring, telehealth makes it easier for patients to access care while also giving providers the chance to expand their reach.
How Does a Telehealth Business Work?
A telehealth business operates by providing healthcare services through digital platforms, allowing patients and healthcare providers to connect remotely. Using tools like video calls, secure messaging, and phone consultations, healthcare professionals can offer everything from routine check-ups to specialized care without the need for in-person visits.
Understand State Laws Surrounding Telemedicine
Before starting a telehealth business, it’s essential to understand the telemedicine laws in your state of incorporation. Each state has specific regulations about what is allowed in a virtual healthcare setting, and knowing these rules will guide how you structure your services.
Telemedicine typically involves using a video-enabled device, such as a smartphone, app, or computer, to connect with patients. However, certain states may have stricter guidelines, such as requiring face-to-face interactions for some types of care, even if delivered virtually. For example, some state laws mandate that doctors conduct videoconference calls to see patients in their homes directly.
It’s also crucial to research how Medicare and Medicaid handle telemedicine reimbursements, as well as state-specific regulations around e-prescriptions. The state medical board and the American Telemedicine Association can provide valuable resources to help clarify these legal requirements and ensure your telehealth business complies with all necessary guidelines.
6 Key Steps to Start a Telehealth Business
1. Prepare a Business Plan
A helpful tool for your telehealth business is its business plan. This document establishes the company’s foundation. You may set goals for the business. Then, establish timelines to reach each one.
A business plan also gives you a chance to share more information about your telehealth business and its offerings. Conduct a market analysis to learn about your customer base. Share details about leadership and their responsibilities and health backgrounds. Then, share financial projections about the business. These numbers will shift as the company grows over time.
2. Choose a Business Name
The name of your telehealth business will help patients identify it. Think of a business name. Then, file to trademark the name.
Conduct a name search prior to filing your trademark application. This ensures that nobody else is currently using the mark. It also means there aren’t any pending applications.
Is the mark available for use? Now, file a trademark application. This will give the owner of the business exclusive rights to the mark. It ensures nobody else uses or plagiarizes the name.
3. Incorporate as a PC or PLLC
Generally, we advise small businesses to form corporations or limited liability companies (LLCs). However, those in the medical profession are licensed professionals. As such, they must incorporate as a specialized entity formation.
Telehealth and telemedicine professionals may choose to incorporate as a professional corporation (PC). Or, they may choose a form a professional limited liability company (PLLC). Choosing the right entity will depend on your telehealth business needs. This also depends on any partners that may be joining the business with you.
Remember that when you file to incorporate as a PC or PLLC you will need to provide proof of good standing. For example, consider your state license. This document is evidence of your professional occupation. It may be shared as relevant proof of your profession.
4. Establish a Physical Address
If you’re starting a telehealth business, you don’t need a physical address to conduct business — right?
Not quite. Insurance providers bill doctors by their physical street address. Your telehealth business will need a physical address. This allows you to offer a hybrid of telemedicine and general healthcare services to patients.
Where else does a telehealth business need a street address? Incorporating as a PC or PLLC requires a street address for your incorporation documents. The telehealth business will also need a registered agent service. A registered agent acts as the point of contact between the company and the state. An RA must also have a street address. They need to be available during general business hours to accept official documents.
5. Obtain Required Licenses and Permits
State laws surrounding telemedicine vary by state. As such, the licenses and permits this practice requires to operate vary in each state.
Check in with your local Secretary of State. You will be able to find out which business licenses and/or permits your telehealth business needs. This allows it to operate in a specific city, county, and the state.
6. Obtain a Tax ID
Your telehealth practice will need its own business bank account. In order to open this account, you must file for an employer identification number (EIN).
An EIN is a federal tax ID. The IRS issues this nine-digit number to businesses. It legally identifies the business. This tax ID ensures it remains in compliance paying federal and payroll taxes. What else can an EIN do? You may hire employees with an EIN. Building your team is key for the success of a telehealth business.
What is the Cost of Starting a Telemedicine Business?
The cost of starting a telehealth business can vary depending on the scope of services offered. One of the main costs is setting up a secure and compliant telehealth platform. This includes software for video consultations, secure messaging, and patient record management, all of which need to meet HIPAA’s privacy standards.
Other costs may include:
- Licensing and Certifications: Depending on the services offered, providers may need specific licenses or certifications to operate across different states or regions.
- Insurance: Malpractice insurance is a must for healthcare providers, and you may also need business insurance to cover liability and operational risks.
- Marketing: Attracting patients to your telemedicine business may require a solid investment in marketing to build awareness and establish trust.
- Staffing: Depending on the size of your business, you may need to hire additional support staff for administrative tasks, technical support, or patient coordination.
While the upfront investment can be significant, telemedicine businesses typically save on overhead costs, such as renting office space and maintaining a physical clinic. This allows you to run a leaner operation while still providing quality care to a broad patient base.
Additional Telehealth Startup Information
Please keep in mind that is a basic guide for starting a telehealth startup. For more information about starting a telehealth business, visit the American Medical Association. Review their Telehealth Implementation Playbook to further identify telehealth needs. You will learn how to design workflow, scale, and evaluate success as a telehealth business.
Let’s help incorporate your telehealth practice today! Visit us at mycorporation.com or call us at 877-692-6772.