Telemedicine Arrangements

Telemedicine is a key component amidst the healthcare industry’s shift to value-based care. It provides a mutually beneficial relationship amongst healthcare providers, patients and payors as a way to achieve the Triple Aim: reduce costs, improve patient satisfaction, and improve the health of populations. As different types of telemedicine arrangements constantly evolve in a highly fragmented reimbursement setting, understanding the proper way to set up telemedicine agreements is important. Challenges include determining if fees are consistent with fair market value, as well as many other issues.

VMG Health has insight into the latest trends and numerous telemedicine compensation structures based on our extensive experience in valuing telemedicine arrangements. As a result, we can rapidly assist in confirming if an arrangement with a physician, or other entity, is fair market value.


Documentation illustrating that telemedicine fees were set at fair market value represents best practice for compliance purposes. Based on regulatory guidance, fees should be derived based on a sound methodology reflecting the terms of the arrangement and relevant value drivers. Two examples of value drivers that should be considered in deriving a proper payment for telemedicine services include: 1) patient contact time and 2) understanding which party (if any) is being reimbursed for the services. VMG has a keen understanding of these factors, and a myriad of other valuation drivers associated with telemedicine arrangements.

Relevant Publications & Presentations on Telemedicine Arrangements

Payments and FMV Considerations in Reviewing Telemedicine Arrangements
Telemedicine: Trends & Fair Market Value Considerations