Telehealth isn’t growing. It’s exploding.
Much faster than the general public — let alone most healthcare providers — expected. And if providers get set up properly right now, there will never be a better time to dive in.
Let’s start with some numbers:
The global telehealth market reached $123.26 billion in 2024 and is expected to grow to USD 455.27 billion by 2030.
That’s not a trend. That’s an inevitability.
If this wave is worth riding (and it is), getting set up correctly makes all the difference.
Jumping into telehealth without the proper tools in place is asking for frustration. From choosing a platform to knowing which regulations apply to services — not to mention actually getting a healthcare merchant account approved (one of the biggest blindspots for new providers) — there’s a lot to think about.
That’s why providers should review the Telehealth Merchant Account Opening Checklist before submitting an application. It breaks down exactly what documentation is needed and the compliance steps to take to get a high-risk healthcare merchant account approved (minus the headaches and credit-score crushing delays).
In this article:
- Why telehealth is growing so rapidly
- The tools every provider needs to start (and stay) successful
- What goes into a healthcare merchant account application
- The keys for long-term success in telehealth
Why Telehealth Is Growing So Rapidly
It’s not just millennials sneaking on Doctor Google while home sick from work.
Patients of all ages wanted telehealth options. And they’re showing that they like what they see.
44% of patients used telehealth services in 2024, based on Deloitte’s latest survey. That’s up from roughly 11% who used telehealth services pre-pandemic.
94% of those patients also said they would use telehealth again. Wait… what?
Telehealth providers are experiencing similar love from their patients.
While originally built as backup solutions for when in-person consultations weren’t possible, approximately 80% of physicians plan to keep using telehealth medicine long-term. As a service patients can use every day — not just during emergencies.
Providers can’t ignore telehealth any longer. It’s not a trend that will disappear overnight.
The Tools Every Telehealth Provider Needs
Ready access to a computer does not make someone a virtual care provider.
Before accepting patients and charging payment cards, the following five tools need to be integrated into the system:
- A HIPAA compliant video platform (hint: Skype and Zoom aren’t going to cut it)
- An Electronic Health Record (EHR) with native telehealth support
- A secure patient intake and consent process before each appointment
- Software to manage scheduling & appointment reminders
- A payment gateway designed specifically for telehealth
Each is critical for providing patients a seamless — and compliant — experience. Neglect one and it will be noticed by patients…and the law.
Except most providers skip out on number five.
The Problem With Payment Processing
This is the part that every provider forgets.
Telehealth services are considered high-risk by most banks and payment processors.
That means services like Stripe, PayPal, and Square aren’t made to handle telehealth transactions. Providers will either get immediately suspended after signing up… or flat out denied from opening an account.
So why do payment processors avoid telehealth businesses?
It comes down to common risk factors associated with telemedicine:
- All telehealth transactions are card-not-present, increasing fraud risk
- Healthcare services historically have higher chargeback ratios
- HIPAA regulations add complexity few payment gateways are equipped to handle
- Recurring payments & memberships are considered high-risk by lending underwriters
That’s why a proper healthcare merchant account application is so important. A standard merchant account won’t hold up in this space. And getting shut down after the first month in business will destroy any practice.
What Goes Into A Healthcare Merchant Account Application
The approval process isn’t bad… if providers know what to expect.
Payment processors that specialise in telehealth will know the documentation underwriters are looking for. Typically, they’ll need to supply:
- Legal documents verifying the business licence
- Documentation from LegitScript (more on that later)
- Proof that operations are HIPAA compliant
- History of processing activity (if available)
- Detailed description of services & payment models
Speaking of LegitScript…
Providers will need to obtain LegitScript certification before launching their telehealth practice. It’s a way for banks to verify the telehealth business is servicing patients within federal regulations.
LegitScript does take time. Usually around 3–4 weeks. Which is why some telehealth payment processors can facilitate that process for their clients. Speeding up account setup time from weeks to just a few days.
Hint: Don’t apply for a merchant account with services like Stripe. Instead, look for a processor with experience working with high-risk healthcare providers.
How To Set Up For Long-Term Success
Alright, payment portals are sorted. What about the rest of the practice?
Here are a few things that set successful telehealth providers apart from those who struggle:
- They take compliance seriously. A single HIPAA violation can cost an entire practice. Don’t become another statistic.
- They build a fully integrated stack. The EHR, scheduling software, and payment gateway should all seamlessly integrate. Eliminating inefficient manual processes.
- They obsess over the patient experience. 54% of Americans have already used telehealth. Patients know what they want and aren’t afraid to visit the competition if it’s made difficult.
- They watch their chargebacks. Payments processors hate chargebacks. So much so that an entire account could be placed on hold or terminated for excess chargebacks. Use a tool that helps manage those before they happen.
Let’s Recap…
Telehealth took the world by storm. And while it seemed like a blip during the pandemic, the realities of virtual healthcare are here to stay.
Providers who set themselves up right will reap the benefits. Those who don’t… will eventually fall into line.
Here’s exactly what every telehealth provider needs to get set up:
- A fully HIPAA compliant ecosystem designed for telehealth
- A properly filled-out healthcare merchant account application
- LegitScript certification prior to going live
- Active chargeback management from day 1
- A plan to stay compliant — today and tomorrow
If these things are done right, long-term success is within reach.
The key piece of infrastructure to nail first? The payments setup.
Everything else doesn’t matter if payments can’t be processed smoothly. Build the payments platform first, everything else will follow.
