Hims & Hers Health's remarkable experience has led them to 1.7 million subscribers and $872 million in revenue, showing what telehealth can achieve. Their 65% revenue growth in 2023 and first profitable quarter prove how digital healthcare platforms are reshaping the scene of medical care.
On average, traditional in-person visits cost $106, excluding transportation and lost wages. This highlights why people just need better healthcare options. Rural communities face the most important healthcare gaps, as they have only 39.8 physicians per 100,000 people while urban areas have 53.3.
This article will cover everything you need to know about building your own telehealth platform. You'll learn to select the right technology infrastructure, navigate regulatory requirements, and build a strong healthcare provider network.
Key Takeaways
- Hims & Hers Pioneered Subscription-Based Telehealth – With 1.7 million subscribers and $872M in revenue, Hims & Hers proves digital healthcare can scale through virtual consults, prescription fulfillment, and personalized treatment plans.
- Telehealth Market is Booming – Expected to reach $851B by 2032, with 65% growth for Hims & Hers in 2023, showing strong demand for digital-first healthcare.
- A Strong Telehealth Platform Needs Key Features – Secure video conferencing, EHR integration, automated billing, and AI-powered documentation for efficient virtual care.
- Data Security & HIPAA Compliance are Critical – End-to-end encryption, strict access controls, and audit trails keep patient data safe. Platforms must comply with HIPAA, PCI, and state-specific laws.
- A Qualified Provider Network is Essential – Hiring licensed professionals across multiple states enables scalable, high-quality care. Credentialing and state licensing must be managed carefully.
- Telehealth Must Follow Complex Regulations – The end of the Public Health Emergency in 2023 brought stricter licensing and prescribing rules, requiring state-specific compliance and detailed patient consent.
- Interstate Licensing & Credentialing by Proxy Help Scale – The Interstate Medical Licensure Compact (IMLC) speeds up multi-state licensing, while credentialing by proxy simplifies expansion.
- Telehealth Entrepreneurs Need Tech, Compliance & Growth Strategy – Success comes from scalable infrastructure, a strong provider network, and ongoing regulatory monitoring.
- Bask Health Delivers Complete Telehealth Solutions – From HIPAA-compliant platforms to provider credentialing and compliance, Bask Health helps entrepreneurs launch and scale successfully.
Understanding the Telehealth Business Model
The telehealth industry continues to show remarkable growth and should reach $851 billion by 2032. Hims & Hers leads this development with a groundbreaking business model that transforms healthcare delivery.
How Hims & Hers revolutionized healthcare
Hims & Hers has grown tremendously through its digital-first approach. Revenue jumped from $148 million in 2020 to an expected $1.47 billion by 2024. The company's success comes from tackling stigmatized health issues on a fully digital platform that's now available across all 50 states. Their first profitable quarter saw revenue exceeding $872 million.
This innovative platform concentrates on five essential specialties: Sexual Health, Men's and Women's Dermatology, Mental Health, and Weight Loss. These areas affect more than 100 million people in the US alone. Individual-specific experiences have proven successful, with 30% of subscribers choosing customized offerings by late 2023.
Key revenue streams
Recurring subscription-based revenue forms the backbone of their business model. Over 90% of income flows from continuous treatment subscribers. Their platform delivers:
The platform maintains strong gross margins between 80-83%, reaching a 4% net profit margin in 2024. Smart customer acquisition shows results in less than a year, with an impressive 88.9% return on invested capital.
Target market analysis
Hims & Hers serves adults of all ages but focuses on millennials who want convenient healthcare solutions. Their approach to stigmatized health issues strikes a chord with younger generations. The platform reaches more customers through mutually beneficial alliances, like their work with REVOLVE, which makes health solutions available to Millennial and Gen Z consumers.
Customer loyalty shines through their subscriber numbers, reaching 1.9 million subscribers by Q2 2024 - a 43% year-over-year jump. Personalization works exceptionally well in newer specialties, with Hers Dermatology subscribers picking customized solutions 75% of the time.
MedMatch, their AI-powered platform, improves user and provider experiences by analyzing data from hundreds of thousands of interactions. This tech-driven approach, combined with their affiliated pharmacy network handling nearly 90% of orders, delivers affordable healthcare solutions efficiently.
Essential Technology Requirements
A strong technical infrastructure stands at the heart of any successful telehealth platform. Here's what you need to build a secure and quick system.
Telemedicine platform features
Your telehealth platform needs sufficient bandwidth to handle audio and video data smoothly. Healthcare providers need imaging technology and digital peripherals to check patients from a distance. Digital stethoscopes, to cite an instance, help doctors listen to heart and lung sounds from remote locations.
The platform should give both clinicians and patients easy-to-use interfaces with these features:
Payment processing integration
Payment systems play a vital role in telehealth operations. Your platform should handle multiple payment methods and include:
- Automated invoicing systems
- Safe payment processing compliance
- Records of transactions
- Insurance workflow integration
Payment processors must follow both HIPAA and PCI standards to keep patient information safe. Recent data shows that 76% of patients choose providers who offer digital payment options.
Data security systems
Security measures are the foundations of any telehealth platform. Data stays protected during transmission and storage through end-to-end encryption. Multi-factor authentication blocks unauthorized access and adds more security.
The platform must stay HIPAA compliant through:
- Up-to-the-minute data analysis of potential threats
- Strict access controls for sensitive data
- Detailed audit trails of all system activities
The core team should be ready to fix platform problems and train healthcare providers. The system needs regular security updates and current antivirus protection.
Regular equipment checks and proper documentation of data processes help meet federal and state requirements. A system-level telehealth governance council helps maintain quality and safety standards.
Building Your Healthcare Provider Network
A strong healthcare provider network serves as the lifeblood of any successful telehealth platform. Virtual healthcare continues to expand, making qualified medical professionals vital to delivering exceptional patient care.
Recruiting qualified professionals
Building a strong telehealth practice depends on attracting healthcare providers who excel in clinical expertise and digital communication. Primary care providers can boost their practice through remote specialist input for complex diagnoses or treatment decisions. This shared approach delivers detailed patient care without extra referrals.
Top talent recruitment works best with:
- Remote work options through flexible scheduling
- Detailed training in telehealth technologies and best practices
- Opportunities for continuing medical education and professional development
Setting up virtual consultation systems
Patient safety and efficiency stand as priorities for virtual consultation systems. These systems need:
- Secure Communication Channels: HIPAA-compliant platforms let providers conduct video consultations, review patient records, and communicate safely with other healthcare team members.
- Patient Safety Protocols: Each patient's location needs specific emergency response procedures and clear protocols that handle technical difficulties.
- Documentation Systems: Electronic health records help providers document care, manage prescriptions, and coordinate treatment plans effectively.
Provider training and support determine the success of virtual consultations. Team members achieve the best results through dedicated interprofessional education. Investment in detailed onboarding and ongoing technical support helps maintain high-quality care standards.
Clear workflows help operations run smoothly for:
Your telehealth platform can deliver consistent, high-quality care by focusing on these foundations while keeping providers satisfied and patients safe. Regular system evaluations and updates help maintain peak performance and tackle new challenges in virtual healthcare delivery.
Legal and Compliance Framework
Telehealth businesses face a tough challenge when dealing with complex regulations. The right compliance measures will give patients safety and help businesses thrive.
Healthcare regulations
Telehealth platforms must follow both state rules and federal laws. The end of the Public Health Emergency on May 11, 2023, has made license rules much stricter. States now require practitioners to hold licenses where their patients get care.
Medical practitioners must think over these points to prescribe medications:
- Each state's controlled substance rules
- Legend drug prescribing limits
- Fair market value payment setup
- Corporate practice of medicine laws that apply
Data privacy requirements
HIPAA rules are the foundations of telehealth data protection. Platforms must complete these steps before starting services:
- Use end-to-end encryption for all communications
- Keep complete audit trails
- Create Business Associate Agreements with vendors
Telehealth providers need resilient security measures that cover encrypted video software and safe data channels. Practitioners should also get detailed patient consent that explains all the risks of sharing health data on virtual platforms.
Licensing considerations
Different state rules need careful attention for interstate practice. The Interstate Medical Licensure Compact (IMLC) makes it easier for doctors to get licenses across states.
Practitioners still need to:
- Sign up with state medical boards
- Get required state-specific licenses
- Keep proper records of virtual visits
Credentialing by proxy lets remote providers get credentials through distant hospitals instead of the usual in-house process. Rural healthcare facilities find this helpful when they expand their telehealth services.
Telehealth businesses should check state rules often because requirements change a lot between different areas. Good recordkeeping helps justify care and support payment claims.
Conclusion
Telehealth platforms like Hims & Hers show incredible potential for success. They reach millions of subscribers and generate substantial revenue. A successful telehealth business needs three key elements: resilient infrastructure, qualified healthcare providers, and strict regulatory compliance.
Healthcare entrepreneurs must focus on HIPAA-compliant systems, secure payment processing, and virtual consultation capabilities. Building a strong network of licensed healthcare professionals helps deliver quality patient care across state lines.
Patient and provider safety depends on regulatory compliance through proper documentation, state-specific licensing, and data privacy measures. Bask Health understands these challenges. We provide state-of-the-art telehealth solutions that effectively handle complex technical, operational, and compliance needs.
Healthcare delivery continues to transform toward digital platforms. Healthcare providers who partner with experienced telehealth solution providers can grow steadily while keeping patients satisfied and staying compliant. The Bask Health team is ready to guide you into the expanding telehealth market with our detailed platform solutions.
References
- National Rural Health Association (NRHA). About rural healthcare: Challenges and solutions. NRHA. https://www.ruralhealth.us/about-us/about-rural-health-care/. Accessed February 13, 2025.
- Hims & Hers Health Inc. Company overview and investor relations. Hims & Hers Health Investor Relations. https://investors.hims.com/overview/default.aspx. Accessed February 13, 2025.
- Yahoo Finance. Hims & Hers Health Inc. (HIMS) stock performance and market analysis. Yahoo Finance. https://finance.yahoo.com/news/hims-hers-health-inc-hims-215341085.html. Accessed February 13, 2025.
- HealthIT.gov. Technical infrastructure requirements for telehealth implementation. Office of the National Coordinator for Health Information Technology. https://www.healthit.gov/faq/what-are-technical-infrastructure-requirements-telehealth. Accessed February 13, 2025.
- Mayo Clinic. Telehealth: Technology meets healthcare. Mayo Clinic Consumer Health. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/telehealth/art-20044878. Accessed February 13, 2025.
- PubMed Central (PMC). The role of telehealth in modern healthcare delivery: A systematic review. PMC. https://pmc.ncbi.nlm.nih.gov/articles/PMC9098135/. Accessed February 13, 2025.
- Holland & Knight LLP. 10 things to know about telehealth compliance in 2023. Holland & Knight Insights. https://www.hklaw.com/en/insights/publications/2023/07/10-things-to-know-about-telehealth-compliance. Accessed February 13, 2025.
