What telehealth startup opportunities remain?
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Despite telehealth's explosive growth during the pandemic, fundamental gaps persist across patient access, provider workflows, and reimbursement structures. The market presents significant opportunities for entrepreneurs and investors targeting underserved segments, infrastructure solutions, and emerging technologies.
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Summary
While telehealth adoption surged during the pandemic, significant patient and provider pain points persist, creating substantial opportunities for startups addressing technical barriers, regulatory complexity, and infrastructure gaps. The market shows strong funding activity with $6.4 billion across 245 deals in H1 2025, particularly favoring AI-driven solutions and chronic disease management platforms.
Opportunity Category | Specific Market Gaps | Funding Activity | Key Players |
---|---|---|---|
Digital Divide Solutions | 25% of patients lack devices/broadband access, particularly rural and elderly populations | Early pilot stage, federal grants | Phrazer, IntelyCare, Project ECHO |
EHR Integration | Poor interoperability creating fragmented patient experiences and workflow disruption | Series B growth stage | Redox, Datica, Particle Health |
Chronic Disease Management | Home-based multi-modal monitoring beyond basic vital signs | $195M+ recent rounds | Maven Clinic, Omron, BioIntelliSense |
AI-Powered Triage | Symptom checking and diagnostic decision support for primary care | Series C commercialization | K Health, Buoy Health, 98point6 |
Underserved Specialties | Dental, vision, rehabilitative therapy, pediatric subspecialties | Seed to Series A | Limited established players |
Reimbursement Navigation | Complex payer policies creating financial uncertainty for providers | Seed to Series A | Clara Health, Reimbursify |
Cross-State Licensing | Patchwork of state regulations limiting multi-state practice | Policy pilots/advocacy | FEMTB standards, state compacts |
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DOWNLOAD THE DECKWhat are the biggest unresolved pain points in telehealth from patient and provider perspectives?
The digital divide remains telehealth's most persistent barrier, with up to 25% of patients lacking adequate devices, broadband access, or technical literacy to engage effectively with virtual care platforms.
This gap disproportionately affects rural populations where 28% lack broadband infrastructure, elderly patients who struggle with platform navigation, and low-income communities without reliable internet access. The problem extends beyond connectivity to include comfort with technology interfaces and understanding of telehealth workflows.
From the provider side, workflow integration represents the greatest operational challenge. Clinicians report frustration with disjointed telehealth systems that don't integrate seamlessly with existing electronic health records, practice management systems, and remote patient monitoring devices. This fragmentation forces providers to toggle between multiple platforms, duplicate data entry, and manage inconsistent patient information flows.
Reimbursement uncertainty creates ongoing financial stress for healthcare providers. Variable CMS policies, inconsistent Medicaid coverage across states, and unpredictable private payer reimbursement rates make it difficult for practices to invest confidently in telehealth infrastructure. The complexity of navigating different payer requirements for telehealth visits adds administrative burden that many smaller practices cannot absorb.
Cross-state licensure regulations compound these challenges by creating a patchwork of compliance requirements that limit providers' ability to serve patients across state lines, particularly problematic for rural areas where patients may need to cross state boundaries for specialized care.
Which telehealth problems are currently being addressed and at what stage of development?
Several startups are tackling the technical literacy barrier through pre-visit technology checks and simplified onboarding processes. Companies like Phrazer and IntelyCare are developing chatbot-assisted setup tools and simplified interfaces specifically designed for less tech-savvy patients. These solutions are currently in early pilot stages as of 2025.
EHR interoperability has attracted significant investment, with companies like Redox, Datica, and Particle Health building API integration platforms that allow telehealth systems to communicate seamlessly with existing healthcare IT infrastructure. These companies have reached Series B growth stages and are seeing adoption across health systems.
Reimbursement navigation tools are emerging from seed and Series A companies like Clara Health and Reimbursify, which offer automated claim submission and payer policy tracking to reduce administrative burden on providers. These solutions are gaining traction as practices seek to minimize billing complexity.
Remote patient monitoring represents the most mature segment, with companies like Omron and BioIntelliSense developing AI-driven RPM devices that integrate with telehealth platforms. These solutions have reached late-stage growth phases and are being deployed at scale across health systems.
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What types of telehealth services remain underserved or missing entirely?
Home-based chronic disease management beyond basic vital sign monitoring represents a significant gap in current telehealth offerings. While platforms can track blood pressure and heart rate, integrating multi-modal data including nutrition tracking, medication adherence, lifestyle factors, and environmental conditions remains underdeveloped.
Rehabilitative and physical therapy services have seen limited telehealth adoption due to equipment logistics and insurance coverage limitations. The need for specialized equipment, hands-on assessment capabilities, and real-time movement analysis creates barriers that few platforms have successfully addressed.
Dental and vision telehealth remain largely unexplored markets due to regulatory complexity and clinical limitations. While some platforms offer basic consultations, comprehensive dental assessments and vision testing require specialized equipment and regulatory approvals that have limited market entry.
Integrated behavioral health within primary care settings represents another underserved area. Despite proven demand for combined physical and mental health services, few platforms have successfully integrated these offerings in a way that meets both clinical and reimbursement requirements.
Pediatric subspecialty care through telehealth remains concentrated in academic medical centers, leaving significant gaps in community-based pediatric specialty access. The complexity of pediatric care protocols and parental consent requirements have slowed platform development in this segment.
Which companies are leading telehealth innovation and what funding have they received?
Maven Clinic leads the women's and family health segment with $195 million in total funding, focusing on comprehensive reproductive health and family planning services through telehealth platforms.
98point6 has raised $296 million developing AI-driven primary care platforms that combine symptom assessment, triage, and provider consultations. The company targets the direct-to-consumer market with subscription-based access models.
Ro (formerly Roman) has secured over $1 billion in funding across multiple rounds, building direct-to-patient platforms for men's and women's health conditions including sexual health, hair loss, and skincare. Their model combines telehealth consultations with direct pharmaceutical fulfillment.
Noom has raised $656 million focusing on digital weight management and GLP-1 medication support, combining behavioral coaching with medical supervision through telehealth platforms.
Rock Health reports $6.4 billion in funding across 245 deals in the first half of 2025, with particular concentration in AI-powered diagnostics and chronic disease management platforms. This funding activity indicates strong investor confidence in telehealth innovation despite regulatory challenges.
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DOWNLOADWhich telehealth problems are not realistically solvable in the short term?
Full-scope virtual physical examinations remain technologically limited despite advances in remote monitoring devices. Current haptic feedback systems and remote stethoscopes lack the precision needed for comprehensive physical assessments that would satisfy clinical standards and liability requirements.
Interstate prescribing of controlled substances faces significant DEA regulatory barriers that are unlikely to be resolved quickly. These restrictions particularly limit tele-psychiatry services and pain management, where controlled substance prescribing is often clinically necessary.
Universal telehealth credentialing across all states remains unlikely due to state autonomy over medical licensing. While interstate compacts are expanding, achieving full national portability requires coordination across 50 different regulatory frameworks, making near-term resolution improbable.
Broadband infrastructure gaps in rural areas require federal investment and multi-agency coordination that extends beyond healthcare sector capabilities. With 28% of rural areas lacking adequate broadband, addressing this foundational barrier requires telecommunications infrastructure investments that operate on longer timelines than typical healthcare technology deployment.
Patient behavioral adoption challenges persist among certain demographics who prefer in-person care for trust, privacy, and comfort reasons. These preferences are culturally and generationally influenced, making them resistant to short-term technological solutions.
What trends are emerging in 2025 and likely to continue through 2026 and beyond?
AI-powered triage and diagnostic decision support tools are seeing the highest adoption rates in 2025, with platforms like Buoy Health and K Health validating symptom checking algorithms for primary care use. These tools are moving from pilot programs to widespread clinical deployment.
Hybrid care models combining in-person and virtual visits are becoming the preferred approach for 82% of patients according to recent surveys. This trend is driving health systems to redesign care delivery workflows that seamlessly integrate both modalities rather than treating telehealth as a separate service line.
Remote patient monitoring is expanding beyond chronic disease management to include post-acute care and surgical recovery monitoring. Devices capable of continuous monitoring are becoming more affordable and user-friendly, enabling broader deployment across patient populations.
Multilingual platform development is accelerating as providers recognize the need to serve diverse patient populations. Companies are investing in real-time translation services and culturally appropriate interface design to address health equity concerns.
Looking ahead to 2026-2028, virtual hospitals and VR/AR-enabled behavioral therapy are expected to gain traction. Value-based care models tied to telehealth outcomes will become more common as payers develop sophisticated metrics for measuring virtual care effectiveness.
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What business models are proving most profitable and sustainable in telehealth?
Direct-to-consumer subscription models have demonstrated profitability at scale, though they face high customer acquisition costs and churn challenges. Companies like Ro and Hims have succeeded by focusing on specific conditions with high patient engagement and recurring revenue potential.
B2B2C employer-sponsored telehealth programs show strong return on investment through reduced employee absenteeism and healthcare costs. Employers are increasingly willing to contract with telehealth platforms as part of comprehensive benefits packages, creating stable revenue streams for providers.
Value-based care partnerships integrated with accountable care organizations (ACOs) and bundled payment models align telehealth incentives with patient outcomes. These arrangements provide sustainable reimbursement while encouraging cost-effective care delivery.
Hybrid clinic extensions where brick-and-mortar health systems add telehealth as a service line show the highest sustainability rates. These models benefit from existing patient relationships, provider credibility, and integrated billing systems while adding telehealth capabilities at relatively low marginal costs.
Platform-as-a-Service models serving other healthcare providers are emerging as particularly stable business models. Companies that provide white-label telehealth infrastructure to health systems and independent practices benefit from recurring software licensing revenue without the complexity of direct patient care.
How are payers supporting or limiting telehealth growth and where are the opportunities?
Payer support has expanded significantly through accountable care organization and bundled payment programs that include telehealth services. These value-based contracts provide predictable reimbursement and align incentives for quality care delivery through virtual channels.
Medicaid programs have relaxed telehealth restrictions on a state-by-state basis, with many states making pandemic-era flexibilities permanent. This creates opportunities for companies targeting Medicaid populations, particularly in states with expanded coverage policies.
Employer-sponsored telehealth benefits are growing rapidly as companies recognize the cost savings and employee satisfaction benefits. This trend creates opportunities for B2B2C platforms that can demonstrate clear ROI through reduced healthcare costs and improved workforce productivity.
However, significant gaps remain in Medicare coverage, particularly around geographic restrictions and originating site requirements that limit rural telehealth access. These limitations create opportunities for companies that can work within Medicare's constraints while advocating for policy changes.
Private payer policies remain inconsistent across different insurance companies and plan types, creating administrative complexity that represents both a challenge and an opportunity for companies that can navigate reimbursement effectively.
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DOWNLOADHow is AI being integrated into telehealth platforms and which functions show the most traction?
Triage and symptom checking applications demonstrate the highest adoption rates among AI-powered telehealth functions, with platforms like Buoy Health and K Health successfully validating their algorithms for primary care use. These tools help patients assess symptoms before scheduling appointments and assist providers in prioritizing urgent cases.
Administrative automation is seeing significant traction in prior authorization processing, appointment scheduling, and billing workflows. Health systems report substantial efficiency gains from AI-powered tools that handle routine administrative tasks, allowing staff to focus on patient care activities.
Diagnostic decision support tools are gaining adoption in radiology and dermatology, where AI algorithms can analyze images and provide preliminary assessments to support provider decision-making. These applications are in mid-stage clinical validation with promising accuracy rates.
Remote patient monitoring enhanced by AI analytics is becoming standard practice for chronic disease management. AI algorithms analyze continuous monitoring data to identify patterns and alert providers to concerning trends before they become acute episodes.
However, direct AI diagnosis without provider oversight faces significant regulatory scrutiny and provider resistance. Healthcare systems remain cautious about liability implications and prefer AI tools that augment rather than replace clinical decision-making.
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What are the biggest regulatory and compliance challenges for new entrants?
Interstate medical licensure remains the most complex regulatory challenge, with each state maintaining different requirements for telehealth practice. While interstate compacts are expanding, new entrants must navigate a patchwork of licensing requirements that can limit service areas and increase compliance costs.
HIPAA compliance for telehealth platforms requires end-to-end encryption, secure data storage, and business associate agreements with all technology vendors. New entrants must invest significantly in cybersecurity infrastructure and ongoing compliance monitoring to meet these requirements.
FDA device regulations apply to any telehealth platform that incorporates medical devices or diagnostic tools. Companies developing integrated platforms with remote monitoring devices must navigate FDA approval processes that can extend development timelines significantly.
State-specific telehealth practice regulations vary widely in terms of required physician-patient relationships, prescribing limitations, and documentation requirements. New entrants must develop compliance frameworks that can adapt to different state requirements while maintaining operational efficiency.
International expansion faces additional complexity as different countries have varying telehealth regulations, data privacy requirements, and medical practice standards. Companies seeking global markets must develop region-specific compliance strategies.
Which patient demographics and chronic conditions are most overlooked by existing solutions?
Severe mental illness populations remain significantly underserved despite the clinical need for accessible behavioral health services. Existing telehealth platforms often lack the specialized clinical protocols and intensive support structures needed for patients with complex psychiatric conditions.
Pediatric subspecialty services are concentrated in academic medical centers, leaving substantial gaps in community-based pediatric care. The complexity of pediatric care protocols, parental consent requirements, and age-appropriate technology interfaces have limited platform development for younger patients.
Non-English speaking populations face significant barriers due to limited multilingual platform availability and cultural competency gaps. While some platforms offer translation services, comprehensive multilingual user interfaces and culturally appropriate care protocols remain underdeveloped.
Elderly patients with multiple chronic conditions often struggle with existing telehealth platforms that aren't designed for their specific needs, including larger text interfaces, simplified navigation, and integration with family caregiver support systems.
Rural populations continue to face access challenges beyond broadband connectivity, including limited local healthcare infrastructure and cultural preferences for in-person care that existing platforms haven't adequately addressed.
What infrastructure would a new telehealth startup need to build or partner for effectively?
An interoperable cloud-based telehealth platform represents the foundational infrastructure requirement, needing HIPAA-compliant hosting, API-driven architecture for third-party integrations, and scalable video conferencing capabilities that can handle high-volume concurrent sessions.
Infrastructure Component | Technical Requirements | Partnership Options | Estimated Investment |
---|---|---|---|
Cloud Platform | HIPAA-compliant hosting, auto-scaling, 99.9% uptime SLA, global CDN | AWS, Azure, Google Cloud | $50K-200K annual |
Video Infrastructure | WebRTC, screen sharing, recording, mobile optimization | Agora, Twilio, Zoom SDK | $0.01-0.10 per minute |
EHR Integration | HL7 FHIR compatibility, bi-directional data sync, audit trails | Redox, Datica, Particle Health | $10K-50K setup + monthly |
Device Integration | FDA-approved RPM devices, mobile health apps, wearables | Omron, BioIntelliSense, Apple Health | $25K-100K development |
Licensing Management | Multi-state credentialing, compact tracking, renewal alerts | State licensing boards, FSMB | $5K-20K per state |
Payment Processing | Insurance billing, patient payments, claims management | Stripe, Square, specialized health billing | 2.9% + $0.30 per transaction |
AI/Analytics | Predictive analytics, outcome tracking, population health | Google Cloud AI, AWS ML, custom development | $100K-500K development |
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Conclusion
The telehealth market presents substantial opportunities for entrepreneurs and investors targeting specific pain points and underserved segments. Success requires addressing technical barriers, regulatory complexity, and infrastructure gaps while building sustainable business models that align with payer incentives.
Companies that can solve interoperability challenges, serve overlooked demographics, and navigate regulatory complexity will find significant market opportunities in this rapidly evolving space.
Sources
- PubMed - Digital Divide in Telehealth
- Fierce Healthcare - Rural Broadband Access
- Business Wire - Patient Pain Points
- Ingenium Digital Health - Telehealth Pain Points
- Experian Healthcare - Digital Front Door
- Caregility - Digital Health Priorities
- Rural Health - Telemedicine Trends 2025
- PMC - Reimbursement Challenges
- Health Law Alliance - Cross-State Licensing
- ASPE - Interstate Licensure Barriers
- TechTarget - Provider Frustrations
- Seed Table - Best Telehealth Startups
- StartupBlink - Top Healthtech Startups
- Rock Health - 2025 Funding Report
- Penn State - Interstate Medical Licensure
- AHA - Telehealth Issue Brief
- Telehealth Broadband Project - Findings
- LinkedIn - Telehealth 2025 Trends
- RingCentral - Telehealth Business Models
- Managed Healthcare Executive - Reimbursement Challenges
- Appinventiv - Top Telehealth Trends