Reaching a solid telemedicine business requires a chain of well-thought-through steps that require careful attention to detail. Launching your telemedicine business is just the beginning, as ensuring its long-term success and steady income requires continuous effort and strategic planning.
Calculating all your startup costs, creating a financial plan for at least the first year, and attracting steady patients can ensure a telemedicine business salary.
You can choose from subscription models, pay-per-visit models, partnerships with insurance companies, and others.
If you're just starting your telemedicine business or you've been there for a while but have no established revenue streams yet, read on for some helpful advice.
Revenue Generation Strategies for Telemedicine Business
Telemedicine is a rather broad and competitive field. Therefore, it requires creative thinking when it comes to generating revenue streams.
There are standard channels, such as pay-per-visit or subscription models, but some innovative strategies can help you increase your income and stand out from your competitors. For example, you can offer virtual consultations and charge a flat fee or partner with other healthcare providers and offer bundled services.
Another method to consider is implementing a tiered pricing system, where patients can choose different service levels based on their needs and budget. This allows for more flexibility and can attract a wider range of patients.
Additionally, you may want to explore opportunities to offer telemedicine services to niche markets, such as corporate wellness programs or rural areas with limited access to healthcare. These partnerships can bring in a consistent flow of patients and revenue.
After grouping the key strategies for a stable telemedicine business income, we advise you to concentrate on the following directions.
- Subscriptions to your telemedicine app, service, or platform
- Implementation of pay-per-visit models
- Partnering with insurance companies and offering telemedicine services as part of their coverage plans
- Offering bundled services and tiered pricing options to cater to different patient needs and budgets
- Expanding into niche markets such as corporate wellness programs or rural areas with limited healthcare access.
Let's explore each of these strategies more.
Implementing a Subscription's Model
The steadiest way to earn money in telemedicine is by creating a system where patients receive regular support from their chosen provider. This is well facilitated through a subscription-based model in which the patient pays a certain fee (monthly or yearly) to access your recurring services.
For example, your telemedicine app can provide virtual consultations, ongoing monitoring, and follow-up visits for patients with chronic conditions. If the patient can continue to access such services, they are much more likely to continue with your telemedicine service provider, which would bring recurring streams of revenue into your business.
You can also offer multi-tier subscription plans for services and features relevant to your patients' varying needs and budgets.
In a nutshell, if you can create a service package where patients can benefit from cost savings, pay a monthly or yearly fee instead of individual consultations, and receive regular healthcare support, you may well expect a sustainable income stream from your telemedicine business.
Here's more on how to create a subscription-based telemedicine model.
Charging Patients for Every E-Visit
Although this model does not secure a regular flow of income, it is one of the most sought-after and accepted ways to monetize your telemedicine services. In this model, you charge your patients according to the complexity of their health issues for every virtual visit.
Many healthcare providers charge fees similar to offline consultations, considering patients get the same thorough consultation and the chance to discuss health issues.
This works quite well if you have had a good reputation with your patients over time and there is no shortage of patients using your services. It is also a good option for new doctors who want to build a personal brand and temporarily value audience reach over high income.
A subtle nuance with this kind of telemedicine business income model is that you have to market your services intensively to provide your business with an uninterrupted flow of patients. This can be through social media, search engine optimization, or sharing with other physicians to get referrals.
Joining Insurance Reimbursements
Insurance policies cover the costs of telehealth implementation and provide reimbursement for specific appointment types, called covered services. In this case, your telehealth services are more straightforward to sell because you can bill a fixed amount or a percentage of virtual visits' cost to the patients' insurance companies. In this model, medical practitioners may get reimbursed from patient co-payments and insurers.
Covered services usually include consultation with mental health, nutrition counseling, and similar. The more specialized your services are in treating conditions like diabetes and hypertension, the higher the likelihood that it will be covered under an insurance policy.
The best that can be said about joining insurance reimbursements is that you need to put less effort into sales and marketing since the insurance companies already promote your services.
However, this model also has its cons. Insurance policies may take too long to approve reimbursements, and the payments can be lower than the standard consultation fee. You also need to adhere to all the documentation requirements and ensure that your virtual appointments meet certain eligibility criteria per the insurer.
Offering Bundled Services
The bundle technique has been an effective marketing strategy for many industries, including telemedicine business income. This approach is simple: You group similar or complementary services together and offer them at a lower price than if the patients were to buy them individually.
You can also package services such as virtual visits, online consultations, and remote monitoring for a discounted price in telehealth services. That way, you are promoting your services and increasing the overall value for the patients, which is a beautiful offer.
The logic behind bundled services is that when your patients feel they get more value for their money, they are likely to opt for bundled services rather than purchasing services separately. It's usually daunting for patients to do all health-related tasks by themselves, and having everything grouped creates a feeling of safety and convenience for them. This may lead to an increase in patient retention, too.
Participating in Corporate Wellness Programs or Similar Initiatives
Like joining insurance networks, participating in corporate wellness programs can open up a whole new market for your telemedicine business. If there are any initiatives for corporate wellness or employee health programs in your area, that's a great opportunity to expand and market your telehealth services. You will be among the telemedicine service providers that are offered to employees, so your chances of getting more patients are high.
How can you get involved in corporate wellness programs?
- Approach the companies directly and offer your services as a telemedicine provider for their employees. Trust us, many companies are willing to invest in their employees' health, and it's a great marketing opportunity for your business.
- Collaborate with other healthcare providers participating in corporate wellness programs. Offer complimentary services or share referrals to create a network that benefits both parties.
If you dig deeper, you'll find that many initiatives for employee wellness are being promoted by local health departments or community organizations. Participating in these initiatives is another great way to market your telemedicine services and reach new patients.
Choosing the Right Cost Structure for Telemedicine Business
Having a steady telemedicine business income is not only about how much you charge per consultation and how often you get new patients but also how you organize your pricing structure. Of course, there is no way to recommend a standard pricing structure that works for all telemedicine businesses, but there are some key factors to consider when choosing the right cost structure for your business.
- Note that a service-based model (charging a fixed fee per consultation) works well if you have a set list of services with clear and defined costs. To be more precise, this model is more suitable for telemedicine businesses that offer patients a limited range of services. On the other hand, if you're planning on expanding your service offerings, a different pricing structure might be more beneficial.
- Subscription-based models are gaining popularity in the telemedicine industry because they create the feeling of unlimited access to health care services for patients. Many patients - even those without health-related issues that need regular monitoring, feel peace of mind when they have access to a doctor at any time, rather than paying for each consultation.
- A hybrid model that combines the above two is also an option. This model allows patients to pay for a subscription that gives them access to a certain number of consultations per month, with the option to pay for additional services or consultations as needed. This can be a good middle ground for both patients and healthcare providers.
Leveraging Technology to Optimize Operational Expenses
We all know the golden rule of earning profits—keeping expenses low. Telemedicine, more than many other industries, can benefit from leveraging technology to optimize operational expenses.
That's because telemedicine's virtual nature eliminates the need for physical infrastructure, saving on rent and maintenance costs. Virtual assistants, automated appointment scheduling systems, and electronic health records can also reduce administrative costs.
In short, being aware of all the recent digital advancements in healthcare technology can make a huge difference in your bottom line.
We encourage you to constantly research and invest in new technologies that can help streamline your telemedicine services. These could include AI-powered chatbots, remote patient monitoring devices, virtual reality for therapy sessions, and much more. By leveraging the latest technology, you can improve the quality of care and reduce operational costs.
How to Optimize Your Existing Income Model as a Telemedicine Business?
It's far more difficult to establish a profitable telemedicine business model than to change the existing one to optimize profits. Nevertheless, if your current telemedicine business model doesn't seem to be working as expected, and you see x-rays of losses, then it's time to make a few tweaks.
Firstly, we encourage you to explore Bask Health's complete package of telemedicine solutions designed to help you improve the efficiency of your telemedicine services and increase revenue. With specialized software that digitizes and automates administrative tasks, you can save time and money while providing better patient care.
Filling in the technology gaps in your telemedicine business can lead to a better patient experience and satisfaction. This, in turn, can result in increased referrals from satisfied patients, ultimately boosting your revenue.
Bask Health specialists—with in-depth market and industry knowledge—can help you identify areas for improvement in your existing income model. By analyzing data and trends, they can suggest ways to optimize your telemedicine services, such as offering subscription-based plans or adding services that align with the current demand.
Contact us today to learn how you can increase your telemedicine business income.
Final Words
Telemedicine seems like a remote concept, but it has the potential to significantly transform healthcare delivery. As technological advancements continue, telemedicine will become more accessible and integral to the healthcare industry.
What's in it for you if you jump the telemedicine bandwagon?
You'll improve patient outcomes, expand your reach, and increase revenue. You'll also be contributing to a more efficient and accessible healthcare system for all.
To maximize your telemedicine business income, you should become the most sought-after provider in your area. This means you should be technologically equipped and knowledgeable about the latest telemedicine practices and regulations.
With Bask Health, you can achieve all that and more.