How Much Does It Cost to Implement Telehealth: The Complete Breakdown

What is the cost for telehealth implementation for your medical establishment? It’s important to know the expenditures the remote connection between doctors and patients may incur, as the final price depends on several factors, such as technology infrastructure, software development and licensing, and so on.

This article will delve into the details of what shapes the cost of telehealth implementation (e.g., tech infrastructure, software development and licensing, etc.), helping you make informed decisions for your IT team and healthcare organization. Moreover, you will consider the price optimization strategies for telehealth implementation.

Telehealth refers to the use of digital communication technologies to deliver healthcare services remotely. It encompasses a broad range of services and applications allowing patients to access medical care distantly, including various modalities such as video conferencing, remote monitoring, mobile health apps, and online consultations.

Telehealth cost for remote services can cover prices for services from primary care and mental health to specialty consultations and follow-up appointments. Remote monitoring devices, such as wearable sensors and home health kits allow patients to track vital signs and share data with their healthcare providers. Moreover, telehealth platforms may incorporate Electronic Health Records (EHR) or Remote Patient Monitoring integration, secure messaging, and appointment scheduling to streamline the patient experience and enhance the cooperation efficiency for healthcare providers.

This way, telehealth is revolutionizing healthcare service delivery by expanding access, improving convenience, and reducing costs, ultimately leading to better outcomes for patients and providers alike.

Let’s find out how much telehealth is popular among healthcare workers and why they strive to reduce the cost of implementing telehealth. Thus, AMA statistics survey states that 80% of physicians have started to use telehealth capabilities to some extent in 2023. This number has grown from 64% in 2020 which gives strong evidence that telehealth is acknowledged by physicians as an essential tool for delivering healthcare services efficiently and conveniently, especially amidst evolving healthcare landscapes and patient demands.

So, it’s not surprising that according to MarketsandMarkets, the global telehealth market will reach $285.7 billion by 2028, from $87.9 billion in 2023. Such an acceptance and readiness to invest in telehealth implementation is also explained by the satisfaction of physicians: over 60% of telehealth workers find telemedicine easy to use, which coincides with positive reception among the doctors. The patients also prove the advantageousness of telemedicine in the ongoing care: according to the newest SingleCare prescription tool’s report, about 45% of sick people highlight the telehealth effectiveness in chronic condition management, which is essential for their health.

The cost of telehealth implementation ranges basically from $15,000 to $50,000+. We’ve prepared a cost-building factors review for telehealth implementation to help you make an informed decision.

Telemedicine software development cost and licensing prices include the expenditures for the telehealth platform itself, its integration with your existing EHR system, and any potential customizations required for your specific workflow.

To implement telehealth into your hospital's internal workflows, you can choose an off-the-shelf (another called ready-made) telemedicine platform or develop a custom one. Off-the-shelf platforms offer you a cost-effective approach with a set of pre-built functionalities, but may lack flexibility for unique needs of your medical establishment.

Conversely, extensive customization or development of bespoke features necessitate custom telehealth platform development, leading to higher upfront costs for your clinic. But these expenditures pay off in the long-term perspective as tailored solutions can precisely meet the specific requirements of the business, resulting in improved efficiency, and better return on investment.

The table below provides a general overview of price ranges associated with software development and licensing for cost of telehealth implementation in the below table:

Choosing the right off-the-shelf telemedicine platform requires careful consideration of your business needs. Platforms offer a range of features, from integrated software and data analytics to encryption and HIPAA compliance tools. The ideal platform size and scope should align with your organization's specific size and the services you plan to offer. Depending on the listed factors, they will cost from $25 to $300+ for a monthly subscription.

However, you can build your own telehealth platform that will be tailored to only your healthcare business needs. As the telehealth platform development is a complex matter requiring extensive expertise in software engineering, healthcare regulations, user experience design, and security protocols, partnering with a skilled HealthTech IT vendor rendering telemedicine software development services is essential to ensure the successful creation and maintenance of a robust and compliant telehealth solution.

While the initial investment for custom telehealth app development may range from $100,000 to $250,000 or more, the long-term benefits in terms of improved patient care, operational efficiency, and competitive advantage can far outweigh the costs.

A strong tech infrastructure organization has a significant impact on costs, including upfront investments in telehealth equipment like computers, tablets, and even medical devices for remote monitoring. Software costs encompass telemedicine software development itself as well as ensuring smooth integration with your existing Electronic Health Record (EHR) system.

The main expenditures for cost of implementing telemedicine through infrastructure are:

Achieving compliance with regulations like Health Insurance Portability and Accountability (HIPAA) and implementing robust security measures demand financial investments. Costs may include hiring legal counsel for regulatory guidance, implementing encryption protocols, conducting security audits, and investing in cybersecurity technologies.

• HIPAA compliance. The compliance cost estimates typically range from $5,000 to $25,000 for initial assessments, policy development, and implementation. Ongoing compliance efforts can cost $2,000 to $10,000 annually depending on the chosen methods for training, risk assessments, and audits.
• State-specific regulations. Staying updated and compliant with state-specific regulations can incur costs for legal consultations and potentially additional licensing fees, although these are typically lower than HIPAA compliance costs.
• Security measures. Security costs depend on the chosen technology solutions and the complexity of your network infrastructure, but can range.

Expenses related to telemedicine service integration with the existing healthcare systems (e.g., EHR systems, laboratory information management software, healthcare CRM development, etc.) may include customization of interfaces, middleware development, data migration (e.g., EHR data migration), and testing/validation processes. Collaboration with competent healthcare IT specialists and vendors may be required to navigate technical challenges and ensure smooth integration, adding to the overall cost of telehealth implementation.

You can review the below examples to understand the additional healthcare costs you need to plan for telehealth implementation.

Telehealth platforms offer a range of licensing models, including perpetual licenses that eliminate ongoing monthly subscription fees. For instance, a software-based solution catering to basic telehealth needs, without the inclusion of remote provider services, can be acquired for an estimated cost of $1,500 per patient site. Alternatively, hardware-based video conferencing systems, typically priced around $10,000 per patient site, might offer a wider array of functionalities.

When starting patient portal development for consultations including texting and video communication capabilities, you may benefit from incorporating the ability to gather, analyze, and transmit data from mobile medical devices.

If considering the cost, software-based communication solutions offer a budget-friendly option, ranging from $1,000 to $1,500 per patient site. This is a cost-effective approach for establishing core communication channels. For a potentially broader range of functionalities, hardware-based communication systems can be considered between $7,000 and $10,000 per site.

To maximize efficiency and avoid unnecessary investment in the cost of implementing telemedicine, it's highly recommended to first assess any existing communication or data management systems within your facility. Exploring potential integration with your new platform can potentially leverage existing infrastructure and streamline data exchange.

While telehealth aims to improve accessibility, some patients might lack access to reliable internet connections or devices suitable for video consultations. Offering loaner tablets or technical support for basic troubleshooting can incur costs, although quantifying this in advance can be challenging. Consider budgeting a dedicated fund for such unforeseen circumstances.

Telemedicine startups may incur extra costs for establishing connectivity with portable devices and integrating medical functionalities through healthcare APIs implementation. Various devices, such as a digital telescope, examination camera, or ENT scope, can be integrated, with costs typically ranging between $5,000 and $10,000 for each addition.

The average cost of developing a mobile telehealth app can vary based on different factors. Monthly payments can range from a few hundred dollars to $10,000. The scope of the app development project will be determined by the size and needs of the user base, ranging from a basic app for a small user community to a sophisticated app for a hospital or clinical network.

You can optimize your telehealth implementation prices (e.g., telehealth systems cost, and others) by partnering with a qualified telehealth software development vendor. Their expertise can help you avoid costly mistakes, navigate complex integrations, and choose cost-effective solutions that meet your specific needs.

While choosing such a vendor, you should pay your attention to the following points:

• Industry experience. You should look for a vendor with a proven track record in healthcare software development services, particularly experience with telehealth solutions. You can also reach out to past clients for their experiences and insights into the vendor's strengths and weaknesses.
• Regulatory expertise. The vendor should possess a deep understanding of HIPAA, GDPR, FDA, FHIR, PIPEDA and other relevant telehealth regulations.
• Project management. A strong project management methodology is crucial for keeping your telehealth project on track and within budget by a chosen vendor.
• Security measures. Select a telehealth IT vendor with robust security protocols (e.g., TLS, SSL, AES) and a commitment to ongoing compliance.
• Communication and support. As clear and consistent communication throughout the development process is essential for your project, you should choose a vendor known for responsiveness and reliable support.

Determining precise costs per telehealth integration is difficult given the multitude of factors involved, but estimates suggest they can cost anywhere from $5,000 to $50,000+. Additionally, for many telehealth implementations, there could be ongoing maintenance costs of $1,000 to $5,000 annually.

We’ll discover the TOP-6 cost influencers on your final telehealth implementation price.

1. Core functionality for telehealth platform. The chosen telehealth platform's features (e.g., video conferencing, e-prescribing) influence cost. More advanced features typically come at a premium. They might be essential when the physicians perform specific tasks: for example, use telehealth to address depression.
2. Data mapping. The complexity of mapping data elements between the telehealth platform and your EHR significantly impacts cost. Simpler data points require less mapping compared to complex medical data.
3. API compatibility. Utilizing pre-built APIs from your EHR streamlines integration and reduces costs compared to custom development.
4. Security measures. Implementing robust security measures like data encryption and intrusion detection adds to the cost.
5. Deployment model. Cloud-based solutions are generally more cost-effective than on-premise deployments requiring upfront hardware and infrastructure investments.
6. Vendor expertise. Telehealth providers familiar with your specific EHR system can offer more efficient and cost-effective solutions.

By carefully considering these factors, you can develop a realistic budget for telehealth integration. Here's a simplified cost breakdown based on telemedicine implementation complexity:

However, you should understand that such a cost of implementing telehealth is approximate, and the detailed estimates depend on the peculiarity of your telehealth implementation project. Cleveroad can help you optimize these costs by offering cost-effective development solutions and identifying areas where you can save without compromising quality. We can also guide you through the various pricing models and help you choose the true cost of implementing telehealth suiting your budget.

According to our 12+ years of experience in developing healthcare solutions, we’ve prepared a list of strategies for you to find out how much does it costs to implement telemedicine efficiently for your organization with our help.

If you decide to start your use of telehealth, partnering with a skilled healthcare software development provider is essential. They navigate complex regulations, seamlessly integrate with your existing systems, and offer customizable solutions for optimal efficiency and security. Ongoing support ensures a smooth telehealth experience for both patients and staff.

For example, during cooperation with Cleveroad, our team of experienced telehealth developers will guide you through the entire process, ensuring you get the best telemedicine software cost for your specific needs. We'll avoid unnecessary customizations while implementing telehealth into your existing infrastructure, ensuring seamless integration and minimal disruption to your operations.

The precise needs assessment is a must before you start implementing telehealth interventions into your everyday healthcare activities. It involves identifying your core patient care functionalities, prioritizing features based on impact and cost, and evaluating existing resources for potential integration. This focused approach avoids unnecessary development and streamlines the process, leading to significant cost savings.

If you partner with Cleveroad, our experienced healthcare Business Analysts will guide you through a comprehensive needs assessment. We'll not only identify core functionalities and prioritize features, but also leverage our experience to recommend to build cost-effective solutions and explore seamless integration options with your existing EHR and other systems.

To optimize the cost of implementing telehealth, consider maximizing the value of your existing resources, evaluating the compatibility of your current IT infrastructure, identifying areas where technology investments can be repurposed or leveraged, and prioritizing features and functionalities that align closely with your immediate and long-term telehealth objectives.

Cleveroad's healthcare IT experts will analyze your IT infrastructure, identifying areas where existing technology can be repurposed for telehealth implementation. We'll then prioritize features that align with your goals, ensuring a cost-effective solution that builds upon your infrastructure and has a valuable price-quality ratio for your health care costs.

Let us tell you more about our company. Cleveroad is a software development company with hands-on experience in HealthTech and Telehealth domains. We have been rendering telehealth software development and implementation services since 2011 for our clients such as medical, telemedicine and remote care institutions.

You’ll obtain the following benefits of collaborating with us:

• Implementing telemedicine through robust custom telehealth systems development
• Software modernization services for telehealth platforms to enhance interoperability
• In-depth experience in integrating telemedicine with your existing healthcare systems, such as healthcare CRMs, EHR systems, Remote Patient Monitoring software, etc.
• Dynamic Project Management office to coordinate your project with efficiency and adaptability, ensuring seamless execution and timely delivery of results
• Agile-minded Healthcare software development team, experienced in developing telemedicine solutions compliant with healthcare regulations, such as GDPR, HIPAA, FHIR, FDA, and so on.
• Testing your telemedicine software through manual and automated testing, analysis of the complex solutions for potential risks
• Estimating cost of implementing telemedicine through rough and detailed price estimate, which can provide a comprehensive understanding of the financial implications associated with integrating telehealth into existing healthcare systems

Let us share our experience in healthcare practice through the development of a Telemedicine appointments management system. This is a fully automated telehealth solution for a British healthcare consultations provider. The platform is compliant with data processing requirements and UK health regulations, legally offering online appointments with clinicians from the UK.