How to Start a Telemedicine Practice in 2025

Posted in Telemedicine

Over 71% of U.S. healthcare providers offer telehealth services, and nearly 1 in 3 patient visits are conducted virtually. What began as a pandemic necessity is now an expectation for convenient care. If you want to learn how to start a telemedicine practice in 2025, this blog can help. It requires a clear business strategy, legal compliance, and the right tech stack for patient acquisition and retention. Let’s get into further details.

How To Start A Telemedicine Practice in 5 Easy Steps

Learning how to start a telehealth business can be daunting. It requires a meticulous approach that encompasses legalities, technologies, and patient satisfaction. 

We have gathered all the necessary foundational steps that must be a part of the business plan for your setup. Here’s how you can successfully start your telemedicine practice: 

1. Establish Your Service Offering

When moving towards this service, many practitioners have several questions on how to start a telemedicine practice. Telemedicine services can be applied to any practice, but the set is never the same for every sector; there are multiple factors to consider, such as clinical goals, legal scope, and technology. 

• Physical Address

You need a physical business address even for virtual-only practices. Without address verification, your application will be denied. The same applies to your clinical services and the tech that supports them. If you plan to offer live video visits, your platform must support reliable, high-quality streaming. You need secure data storage if you want asynchronous visits (store-and-forward). 

• Scope of the Service

Rushing into a telemedicine business platform or buying tools without a clear service model can cost you. Instead, start by defining your telemedicine scope. What conditions will you treat? What visit types will you offer: video, phone, or messaging? Who is your target patient? This will drive every tech and clinical decision that follows.

• Goals

When considering how to set up telehealth business, think about realistic, measurable goals for your program from the start. Does the telehealth practice aim to reduce wait times, decrease no-shows, or just work on improving patient retention or satisfaction? Track the metrics that matter to your specialty and business model

2. Business and Legal Foundation

When planning to start a telemedicine practice, begin with a solid legal and operational structure to protect your personal assets and adhere to compliance. This will help with sustainable growth and build trustworthiness in patients and regulatory bodies.

• Legal Entity Formation

Establish a formal business structure. Common choices for healthcare professionals include a Limited Liability Company (LLC), a Professional Corporation (PC), or a Professional Limited Liability Company (PLLC). 

The best fit depends on your state’s regulations for licensed professionals and your personal liability preferences. This legal structure protects your personal assets from business liabilities and simplifies tax and banking setup. 

Once your entity is established, you must apply for an Employer Identification Number (EIN) from the IRS. This unique federal tax ID is crucial for opening business bank accounts, hiring staff, and all tax filings. Forming a legal entity protects you financially, adds significant credibility to your practice, and is a prerequisite for most other business operations.

• Licensing and Credentialing Protocols
  

Obtaining a valid and credible license is non-negotiable when starting a telemedicine practice. You must hold an active medical license in every state where your patients are physically located during a telehealth visit, not just where your practice is based. This is a critical and frequently evolving area of telemedicine law.

Thoroughly research the state-specific telemedicine regulations to ensure compliance and determine the type of telehealth services you want to provide (e.g., synchronous video, asynchronous store-and-forward, audio-only).

To simplify multi-state licensing, consider joining compacts like the IMLC for physicians or the NLC for nurses. These allow faster licensure across participating states. Also, complete credentialing to verify your qualifications, it is required for insurance enrollment and avoiding legal penalties.

• Malpractice Insurance

It is a common misconception that traditional in-person malpractice plans automatically cover virtual care; however, many do not. This is due to different types of risks involved and cross-state restrictions. 

Confirm this with your insurance provider. Your malpractice policy should include all types of telemedicine services offered and extend coverage to all the states where you treat patients. 

This essential coverage protects you against potential claims of negligence or harm arising from your virtual healthcare delivery.

• HIPAA Compliance

When starting a telemedicine practice, always comply with HIPAA regulations. Patient privacy and data security are critical aspects of U.S. healthcare. 

Encrypt and secure all patient communications and protected health information storage. A critical step is to partner only with vendors (e.g., your telehealth platform and cloud storage providers) willing to sign a Business Associate Agreement (BAA). 

This legally obligates them to protect PHI. Implement regular security audits and provide mandatory, ongoing HIPAA training for all staff. This safeguards sensitive patient data, builds trust, and protects your practice from severe legal penalties for non-compliance.

• Payer Registration (NPI) 

Apply for a National Provider Identifier (NPI), a unique 10-digit number issued by CMS for smooth billing and reimbursement for your services. 

Enroll your telemedicine practice with the main government bodies like Medicare and Medicaid, and any relevant private insurers you plan to accept. This credentialing and enrollment process can be lengthy, so initiate it early. Before submitting any claims, you must thoroughly review each payer’s specific telehealth guidelines regarding covered services, eligible modalities, coding, and modifiers, as these can vary significantly by insurer and state.

3. Technology and Platform Choice 

Choose reliable, secure, and user-friendly technologies for your platform. Before spending on a telemedicine software development, you must determine what features you require based on your service offering.

• Telehealth Platform

Selecting the right telehealth platform is critical when we learn how to start a telehealth program. This software facilitates your virtual visits and patient interactions. You must choose a demonstrably HIPAA-compliant platform and be willing to sign a Business Associate Agreement (BAA).

The features must include encrypted video and messaging for secure real-time and asynchronous communication, automated scheduling, and EHR, like Epic integration. Tools like virtual waiting rooms, secure file sharing, and integrated payment processing contribute to the success of the telehealth platform.

Evaluate the cost-effectiveness, usability for both providers and patients, and review reputable platform reviews. This choice dictates the quality of your virtual care delivery and your ability to meet compliance standards.

• Website and Online Presence
  

Your professional website is your virtual clinic’s front face and a primary patient connector. It should be responsive and SEO-optimized to rank highly in search engine results. Your site should clearly explain your services, provider bios, booking instructions, insurance plans, and provide valuable patient education resources. 

Beyond your website, optimizing your Google Business Profile, strategic social media engagement, and listings in professional online directories boost your visibility and credibility.

A strong and trustworthy online presence attracts new patients, provides essential information, and establishes your practice’s professional identity.

4. Operations and Staffing

How to start a telehealth business entails efficient operations and a well-trained staff. These factors help deliver consistent, high-quality virtual care. Telemedicine can alter various areas of your daily workflow, making personnel engagement and support crucial.

• Staffing

Determine your staffing requirements to support your telemedicine business. Include dedicated administrative support for scheduling, patient registration, insurance verification, and customer support for answering inquiries. 

Also, add clinical support roles such as nurses or medical assistants for pre-visit screening, patient education, or virtual assistance during visits. 

Outsourcing administrative or IT functions is a common and often cost-effective strategy for solo or small practices. To ensure seamless integration, get your personnel engaged early. Provide ongoing, specialized training to all staff members on telehealth workflows, technology use, HIPAA protocols, and effective patient communication in a virtual environment. This ensures smooth patient flow, efficient administrative tasks, and proper technical and clinical support.

• Billing & Coding
  

Set up a billing system that accurately uses correct CPT (Current Procedural Terminology) and HCPCS (Healthcare Common Procedure Coding System) codes for telehealth services. Continue using Evaluation and Management (E/M) codes (e.g., 99202–99215) for synchronous audio-visual visits. 

Modifier 95 is generally used for non-Medicare payers, while Medicare no longer requires it. For audio-only visits, Medicare typically requires E/M codes (99202–99215) with modifier 93, as the specific audio-only CPT codes (99441–99443) have been largely deleted or limited by CMS for 2025. It’s critical to stay informed on CMS 2025 updates.

Many COVID-19 era flexibilities regarding telehealth (e.g., geographic and originating site restrictions) are currently extended through at least September 30, 2025, but some are not permanent.

• Patient Onboarding
  

Developing a clear and user-friendly patient onboarding system positively affects the acceptance rates and satisfaction.

This system should include easy-to-use online registration forms and secure digital consent forms. The instructions should be clear and patient-friendly for tech setup and platform access, including troubleshooting guides.

Automated appointment reminders and pre-visit checklists minimize confusion and reduce no-shows. Easily accessible technical support offers a smooth, positive first impression for your patients.

• Workflow Design
  

Outline a structured, end-to-end supportive workflow for consistent, high-quality healthcare delivery. This includes a pre-visit checklist that usually includes patient check-in, insurance verification, chart review, etc. 

Leverage automation tools for routine tasks like appointment reminders, automated notes for common communications, and prescription refill requests where appropriate. 

This optimizes operational efficiency, reduces errors, and ensures a consistent and high-quality patient experience, improving staff efficiency and customer satisfaction.

• Marketing of The Services

Patients must know about the virtual visits available to them. A multi-tiered marketing strategy helps reach the target audience and builds the practice’s reputation. Look into Search Engine Optimization (SEO) to optimize your website content and online listings to rank highly for relevant search terms. 

Engage on social media platforms, share educational content and practice updates to build community and trust. Make sure that your practice is accurately listed in online provider directories. 

Content marketing can help establish trustworthiness by publishing educational blogs, webinars, and informational videos that answer patient questions and validate your expertise. 

5. Other Considerations

Continuous refinement and a commitment to quality improvement can guarantee long-term success and patient satisfaction.

• Regular Audits
  

Implement a schedule for regular audits to make sure your services comply with the current regulations. Identify areas for improvement and maintain high standards of care. These audits should cover: HIPAA compliance, licensing and credentialing, billing accuracy, and technology performance. 

• Quality Assurance

Quality assurance tools can help review anonymized sessions or documentation for adherence to best practices. This approach flags operational discrepancies at an early stage. The practice remains legal and in regulatory compliance.

Folio3 Digital Health Can Help You Start a Telemedicine Practice 

Wondering how to start a telemedicine practice, but do not know where to begin? Folio3 Digital Health can help. We can support you set up a telehealth setup on the foundational principles of trust, security, and efficiency. Our platforms are designed and developed by industry experts who strictly adhere to HIPAA compliance guidelines. With AI-powered capabilities and HL7/FHIR integration, we help healthcare providers offer smarter, more connected, and highly personalized patient care.

Closing Note 

78.6% of hospitals now offer telehealth services, and 74% of physicians report using telehealth as part of routine care. With these shifts, virtual care has many more opportunities than we think. Starting a telemedicine practice is about building a patient-centered, compliant, sustainable model, rather than focusing on technology only. If you’re ready to launch your telemedicine practice in 2025, now is the time.

Frequently Asked Questions 

What services can you offer through telemedicine?

Telemedicine offers a wide range of healthcare services remotely, including: 

• General health check-ups
• Prescription refills
• Mental health counseling
• Dermatology consultations
• Urgent care for minor illnesses. 

How to start a telehealth business and maintain it?

To start a successful telehealth business, begin with a strong foundation that encompasses legal compliance, secure technology, and most importantly, effective marketing. A foolproof business plan, a defined niche, and licensing are crucial. 

How to set up a telemedicine practice, including choosing the right technology and getting the necessary approvals from insurance companies?

Defining your telemedicine business model, selecting a secure and HIPAA-compliant platform, understanding state/federal regulations, and working with insurance companies for proper reimbursement.

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