Due to COVID-19 and the practice of social distancing, the speed of telehealth adoption has increased more than what was expected.
Federal and state telehealth policy changes were to help accommodate as many people as possible. Many changes were made as part of this expansion of telehealth services, such as telemedicine companies being allowed to prescribe medications to patients without physical contact with their healthcare provider.
This wave of telehealth expansion marked a pivotal moment in modern healthcare, reshaping how services are delivered and accelerating innovation across clinical and operational workflows. This also helped pave the way for healthcare professionals working within the telehealth industry to practice across state lines under their license from their home state.
Telehealth’s Sudden Rise
The expansion of telehealth services was propelled by the urgent need of patients to access healthcare without leaving their homes. This shift was supported by state and federal agencies loosening restrictions on telemedicine, expanding eligible codes for reimbursement, and broadening approved locations and provider types.. These rapid adjustments fueled unprecedented telehealth expansion across the United States.
When Did Telehealth Become Popular?
While the telehealth industry existed in limited forms for decades, telehealth companies became mainstream in early 2020. Within the first three months of the pandemic, telehealth adoption jumped by 766%, transforming the landscape of outpatient care almost overnight. Providers and patients rapidly embraced virtual consultations as a safer and more flexible option.
Before COVID-19, Medicare primarily covered telehealth services for beneficiaries living in rural areas, where there were far fewer medical providers, and patients were required to travel to designated sites, such as clinics or hospitals, to receive telehealth.
Outside of rural areas, all health professionals who were eligible to bill Medicare could now deliver their services via telehealth (including physical therapists, speech-language pathologists, and occupational therapists).
The Impact of Telehealth Post-COVID
The significant expansion of telehealth post-COVID-19 disproportionately increased access to care in urban communities. In 2021, more than one-third of Americans (37%) lived in areas with shortages of mental health professionals.
This rapid telehealth expansion also revealed opportunities to reach patients who previously faced logistical, geographic, or economic barriers to care. While disparities remain, particularly among rural and lower-income populations, virtual care has become a vital entry point into the healthcare system.
As for the quality of care, early evidence suggests that services delivered through telehealth can be equivalent to in-person care for managing certain diseases and treating certain health issues.
Because of telehealth’s ability to make care more accessible, the Congressional Budget Office (CBO) has historically projected that the expansion of telehealth services will increase healthcare spending; however, an individual’s clinical condition, as well as how virtual care is being used by a provider, are both key factors in determining the balance of substitutive versus additive care.
Telehealth Expansion Act
The passing of the Telehealth Expansion Act of 2023 demonstrates the federal government’s commitment to health equity. This shows the importance of increasing access to quality healthcare for all citizens, regardless of location or socioeconomic status.
This bipartisan bill passed in Congress allows all citizens who have high-deductible health plans and health savings accounts access to telehealth and other remote care services permanently, without having to meet their minimum deductible first.
The Telehealth Expansion Act makes permanent telehealth flexibilities that were first introduced in the CARES Act of 2020.
Continued Telehealth Expansions
After the initial flexibilities were set to expire at the end of 2024, Congress passed short-term extensions in 2025.
First, many of the waivers were extended through March 31, 2025, and then a subsequent spending bill extended them again through September 30, 2025. These extensions continued key provisions such as waiving geographic restrictions for Medicare beneficiaries, allowing patients to receive care at home, and permitting the use of audio-only services for certain situations.
This has led to more telehealth adoption across the healthcare industry.
New Trends in the Telehealth Industry
The telehealth industry continues to evolve rapidly. What began as a pandemic-driven necessity has grown into a sustainable care delivery model. In 2025, many leading telehealth companies are investing in hybrid models that blend virtual and in-person visits, asynchronous consultations, and AI-driven triage tools.
Behavioral health remains a core driver of telemedicine growth, along with chronic care management and preventative screenings. The expansion of telehealth services is also supported by employer-sponsored virtual-first health plans, which offer cost savings and convenience to patients.
To remain competitive, providers must be strategic about scaling their telehealth company — investing in workflow integration, provider training, and adaptable digital platforms.
Challenges to Sustainable Telehealth Adoption
While progress continues in telehealth expansion, several barriers remain. Broadband gaps, limited digital literacy, and outdated legacy systems pose challenges for patients and providers alike. Reimbursement parity remains uncertain in some regions, and regulatory complexity across state lines still impacts operations. These persistent challenges have the potential to slow telemedicine growth if not addressed with strategic investment and policy reform.
For many telehealth companies, backend logistics can be the biggest hurdle. That’s where tools like pharmacy automation fulfillment help streamline medication delivery and reduce human error. Integrated systems that connect e-prescriptions directly to compounding or shipping hubs allow providers to focus more on care and less on logistics.
Supporting the Telehealth Ecosystem
As telemedicine growth continues, supportive infrastructure is more important than ever. At Precision Medicine, we provide pharmaceutical fulfillment services exclusively for telemedicine companies, connecting virtual care to physical treatment. Our specialized team handles both custom-compounded medications and commercial OTC products with precision and reliability.
By working behind the scenes, we enable providers within the telehealth industry to serve patients efficiently without worrying about supply chains or regulatory complexity. As a compounding pharmacy partner, Precision Medicine helps telehealth providers streamline operations, reduce delays, and improve patient satisfaction.
In a time marked by the rapid expansion of telehealth services, our compounding expertise and exclusive alignment with virtual care allow us to anticipate provider needs, support clinical workflows, and help scale telemedicine delivery with confidence.
The Future of Telehealth
Telemedicine growth looks more than just virtual – it’s proactive and integrated. As patients grow more accustomed to convenience, and providers learn to deliver care across digital channels, the demand for virtual solutions will only rise.
To stay ahead, healthcare organizations must think beyond access. Success in the coming years will depend on precision, coordination, and equitable design. Partnering with Precision Medicine enables telehealth providers to meet these demands by ensuring seamless, reliable medication fulfillment.