How Telemedicine Companies Use NPs and RNs: A Practical Guide to Cost Savings and Compliance
Telemedicine companies often rely on Nurse Practitioners (NPs) and Registered Nurses (RNs) to provide cost-effective, high-quality care. Beyond the financial benefits, this strategy also allows companies to navigate complex regulations while expanding patient access. However, understanding how to use NPs and RNs effectively—and in compliance with state-specific laws like Independent Practice Authority (IPA) and Collaborative Practice Agreements (CPAs)—is essential for success.
Why NPs and RNs Are a Smart Choice
Lower Costs Without Compromising Care
NPs and RNs typically earn less than physicians, yet they can perform many of the same services, especially in routine and preventive care. This allows companies to reduce overhead while still offering excellent care.Broader Patient Access
NPs and RNs play a crucial role in filling gaps in care, especially in rural or underserved areas where physician shortages are common. They enable telemedicine companies to scale quickly while keeping costs manageable.Efficient Use of Resources
For many cases—like managing chronic conditions, providing patient education, or handling initial consultations—NPs and RNs can take the lead, freeing physicians to focus on more complex cases.
Independent Practice Authority: A Key Factor
The ability of NPs to work independently depends on state laws. States fall into three categories:
Full Practice: NPs can diagnose, treat, and prescribe medications without needing a physician’s oversight. This includes states like California, Oregon, and Colorado. Full-practice states are ideal for telemedicine companies because they minimize administrative burdens and costs.
Reduced Practice: NPs require a formal agreement with a physician for certain aspects of care.
Restricted Practice: NPs must work under the direct supervision of a physician, limiting their autonomy.
Helpful Resource: AANP’s State Practice Map provides an up-to-date overview of state regulations.
Collaborative Practice Agreements: Managing Compliance
In states without full IPA, Collaborative Practice Agreements (CPAs) are required for NPs to practice. These agreements outline the working relationship between the NP and a collaborating physician, covering areas like oversight, prescriptive authority, and care protocols.
Challenges with CPAs: CPAs can increase administrative work and costs for telemedicine companies. Physicians often charge fees to oversee NPs, either as a percentage of revenue or a flat rate.
Streamlining CPAs: Platforms like Single Aim Health can simplify this process by connecting NPs with physicians and providing tools to manage agreements efficiently.
How Telemedicine Companies Can Get Started
Assess Your Target States
Research IPA laws and CPA requirements in the states where you plan to operate. Full-practice states often provide the greatest flexibility.Build Standard Processes
Develop templates for CPAs and workflows for onboarding NPs and RNs. This ensures compliance and reduces administrative headaches.Focus on Compliance
Regularly review state regulations to ensure your agreements and operations stay up-to-date. Non-compliance can lead to costly fines or disruptions.Use Reliable Tools
Consider platforms like Single Aim Health to streamline collaboration agreements and compliance management.
Need Help Building This Out?
If your telemedicine company needs guidance on structuring operations, navigating state laws, or setting up compliance processes, Camino Strategy can help. We specialize in healthcare operations, strategy, and compliance, offering tailored solutions to help your business scale efficiently while staying compliant.
Get in touch to learn more about how we can support your telemedicine goals.
