Telemedicine is a relatively new front on the clinical model, and yet it has already disrupted traditional approaches to health care. Between 2017 to 2022, the sector witnessed an impressive compound annual growth rate of almost 15%, much of it driven in the last three years by the Covid-19 pandemic.
Telehealth business models are flexible and designed to increase the accessibility of healthcare services, brands, and products for patients and consumers. Even though they have the advantage of being a booming sector, they still have to work on improving revenue like any other business.
Let’s look at a few of the most successful telehealth business models and how any telemedicine company can improve revenue.
What Are Telehealth Business Models?
The telehealth industry has been rapidly expanding over the last several years. There are always new, emerging business models for this approach to healthcare.
Here three of the most common business models for a telehealth company.
Virtual First Visit Models
Virtual first visit models are one of the fastest growing sectors in the telehealth industry.
A virtual first visit business model allows patients to select either a physical visit at a brick and mortar location or a telehealth visit for their first point of contact with a healthcare provider.
A patient can have an initial assessment in person and follow up appointments in a digital space, for example.
Telehealth companies that specialize in virtual first visit models or focus on helping healthcare providers set up their own virtual first visit operation have outstanding growth potential.
Platform Only
A common business model for Telehealth companies is to only offer a platform. This is essentially a marketing platform for a product or service that is connected to the telehealth business.
Platform-only telehealth business models often work with third-party providers to give their customers access to prescriptions and other medical services.
It’s common for these platforms to evolve as they grow. Remember, platform-only telehealth companies are primarily marketing efforts for a service, product, or brand.
Platform + Provider
The Platform + Plus provider business model is the single most common model for telehealth companies. When you think of a telehealth brand, you’re probably thinking of a platform Plus + Provider setup.
These telehealth companies are actually affiliated networks of several companies operated by a Management Services Organization or MSO.
That MSO will operate under a brand name that consumers will recognize as the telehealth company.
This business model has prohibitive startup costs, but it does have greater revenue potential thanks to its increased scope.
Boosting Efficiency and Improving Your Telehealth Revenue
Just like any business, a telehealth provider needs to improve efficiency in order to boost its revenue.
The Digital Efficiency Headstart
The biggest deficiency advantage for telemedicine is that your business has already Incorporated digital technologies.
A telehealth service can easily integrate into the existing digital infrastructure of a healthcare provider. This gives you simplified access to scheduling tools, patient information, and allows you to quickly adapt to changes in the legislation that covers digital medicine.
Embracing the virtual aspect of telemedicine allows telehealth companies to keep overhead low and revenue high.
Decrease No-Shows
As a telehealth service, you have some unique tools when it comes to decreasing no shows.
An abrupt cancellation can seriously disrupt a brick and mortar healthcare provider. It can cause a ripple effect that disrupts scheduling throughout an entire day leading to serious revenue loss.
The increased accessibility of telemedicine allows healthcare providers to adapt more easily to these abrupt cancellations. providers can maintain their caseload by extending sessions or offering last-minute appointments much more easily than a physical location could.
Logistics are on the side of telemedicine when it comes to decreasing cancellations. Your patients don’t need to drive to your location or deal with public transit. they simply log on to your healthcare provider portal to access the services they’re looking for.
Lean Into Remote Operations
There is a lot of conversation about companies either staying remote or returning it to in-person operations at the office. However, telehealth is an outlier.
You can greatly improve the efficiency and lower the overhead of your operation by keeping things remote. Telehealth is already defined by this relationship to virtual technology.
Keeping your operations remote allows you to lower costly overhead such as renting an office or the upkeep of a physical building.
Reconsider Your Demographics
Telehealth companies have a few unique considerations when it comes to how they approach and shape their demographics.
Telehealth is able to reach individuals who might not have access to brick and mortar Healthcare facilities. This means looking beyond the traditional demographics targeted by the healthcare industry.
A good example of this is millennials. Millennials are much more likely to adopt telehealth solutions than other generations.
Target Emerging Healthcare Trends
The healthcare industry experienced a major shakeup during the covid-19 pandemic. These changes are still causing ripple effects throughout the industry. The importance of assessing new healthcare advances as potential revenue streams is vital for telehealth business models.
A key example of this is medical marijuana. Legal cannabis is becoming a popular option and there is even talk of insurance companies covering cannabis.
Your telehealth business can incorporate aspects of the medical marijuana business depending on regulations in your state. Even offering medical marijuana consultations and counseling can open new revenue streams.
Mobile telehealth is another emerging frontier. Patients are increasingly looking to interact with the healthcare system through tablets and smartphones with mobile operating systems.
Deciding whether or not a telemedicine app is right for your business model is a big step, but one that could greatly improve your revenue.
Your telehealth business can serve this demographic through mobile-targeted apps, services, and other key offerings.
Conclusion
Telehealth companies have been increasing in popularity since the start of the pandemic. They offer an efficient and accessible way for individuals to gain access to healthcare providers.
With a strong business model and a clever use of digital technologies, telehealth companies can stay efficient and improve revenue.
