How to speed up multi-state licensing
For telehealth companies and clinics, scaling across state lines presents one major hurdle: the complex, state-by-state licensing requirements for healthcare providers. The Interstate Medical Licensure Compact (IMLC) and the Nurse Licensure Compact (NLC) offer transformative solutions for simplifying and expediting cross-state licensing for physicians, nurses, and nurse practitioners (NPs).
Here’s how telehealth companies can strategically leverage these licensing compacts to expand rapidly, reduce administrative burdens, and improve patient access to care.
What are Licensing Compacts?
Licensing compacts are agreements between states that streamline the process of obtaining multiple state licenses. By meeting uniform eligibility requirements, healthcare providers can practice in all participating states without needing to apply for separate licenses in each one. This is especially valuable in telehealth, where cross-state practice is crucial for scaling services and meeting patient demand.
1. The Interstate Medical Licensure Compact (IMLC)
The IMLC is a licensing pathway for physicians, allowing them to quickly and efficiently obtain licenses in participating states. Instead of navigating separate application processes for each state, physicians apply through their state of principal licensure (SPL) and can then obtain licenses in other compact member states.
Key Features:
Participating States: 38 states, the District of Columbia, and Guam.
Streamlined Process: A single application confirms eligibility, followed by expedited licensing in other member states.
Consistent Standards: Member states uphold uniform licensing requirements, ensuring quality and reliability.
Benefits for Telehealth Companies:
Faster Time to Market: Physicians can obtain multiple state licenses in weeks instead of months.
Cost Efficiency: The compact reduces administrative costs associated with managing individual state applications.
Flexible Staffing: Providers licensed in multiple states can adapt quickly to shifts in patient demand.
2. The Nurse Licensure Compact (NLC)
The NLC allows registered nurses (RNs) and licensed practical/vocational nurses (LPNs/LVNs) to hold a multistate license, enabling practice in any of the 41 participating states and jurisdictions. For telehealth companies reliant on nurses for triage, remote monitoring, or patient education, the NLC is a game-changer.
Key Features:
Broad Coverage: With 41 member states, the NLC offers one of the most extensive licensing networks.
Simplified Licensing: A single multistate license eliminates the need for duplicate applications.
High Standards: Nurses must meet uniform licensure criteria, including a background check.
Using the NLC for Nurse Practitioners (NPs):
Although the NLC primarily applies to RNs, it can significantly streamline the licensing process for NPs as well. NPs need both an RN license and an advanced practice registered nurse (APRN) license to practice. By holding an NLC multistate RN license, NPs can expedite the APRN licensing process in compact member states, since they do not have to apply for a RN license in the state they are getting cross-licensed into if they live in a state that is in the NLC and are getting cross-licensed into a state that is in the NLC.
States in the NLC (as of 2024): Alabama, Arizona, Arkansas, Colorado, Connecticut (pending), Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts (pending), Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania (currently being implemented), Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming.
Benefits for Telehealth Companies:
Rapid Deployment: Nurses and NPs with multistate RN licenses can start practicing in compact states immediately.
Cost Savings: Avoid duplicate RN license fees for NPs.
Increased Flexibility: NLC-licensed nurses can adapt to patient needs across multiple states without additional licensure delays.
Combining the IMLC and NLC for Scalable Telehealth Growth
For telehealth companies employing both physicians and nurses, the combined power of the IMLC and NLC offers unmatched efficiency in licensing. Here’s how to leverage both compacts for rapid scaling:
Recruit Compact-Eligible Providers:
Prioritize hiring physicians, nurses, and NPs already licensed in compact member states.
Identify candidates who meet compact eligibility criteria, such as holding a full, unrestricted license in their home state.
Centralize Credentialing Processes:
Use licensing software or create a dedicated team to manage compact applications.
Track compact participation and renewals for all providers to maintain compliance.
Expand Patient Access Strategically:
Target compact member states with high demand for telehealth services to maximize the reach of your licensed providers.
Use data analytics to identify underserved areas where compact licensing can fill gaps quickly.
Educate Providers on Compact Benefits:
Help providers understand how compact participation simplifies their practice and increases their career flexibility.
Offer resources or incentives for eligible providers to convert to compact licenses.
Why Licensing Compacts Are a Must for Telehealth Companies
Licensing compacts offer significant advantages for telehealth companies:
Speed to Market: Compact licensing allows faster deployment of providers across multiple states.
Scalability: Expanding services into compact member states is far easier and more cost-effective.
Patient Access: Compact-licensed providers can reach underserved areas, improving care availability and outcomes.
Conclusion
For telehealth companies looking to scale, the IMLC and NLC provide a powerful framework for navigating the complexities of multistate licensing. By leveraging these compacts, companies can reduce administrative barriers, deploy providers more quickly, and meet the growing demand for accessible, high-quality telehealth services.
