True Cost of Implementing a Telehealth System

In a world increasingly shaped by digital health solutions, understanding the cost of telemedicine software is becoming more crucial than ever. According to the data from the American Hospital Association, approximately 74% of patients in the US expressed willingness to utilize telehealth services. Yet, while adoption is high, clarity on the billing is often lacking.

Is the cost for implementing and maintaining telehealth solutions within a reasonable range? And more importantly, do the benefits outweigh the costs?

If you are also in doubt, you’ve come to the right place! We understand the challenge you’re facing. As experts in this field, we’ve guided numerous healthcare companies through the labyrinth of telemedicine app development costs, unraveling the tangled web of considerations that determine the cost.

In this blog post, we’re going to share our in-depth insights into the cost of telehealth system development, drawn from our team’s extensive expertise. We’ll break down the factors impacting the price, provide an overview of the market, and show you how the benefits of investing in telemedicine can justify the costs.

Why You Should Consider Telemedicine System As an Opportunity

The telemedicine market has been significantly reshaped by the COVID-19 pandemic. Providers are now considering telehealth systems more seriously than ever before, primarily for the below reasons.

Responding to the Pandemic and Future Health Crises

The pandemic has underscored the need for remote healthcare solutions. Telemedicine systems not only mitigate the risk of virus transmission by reducing physical visits but also ensure continued care during such unprecedented crises.

Enhancing Patient Convenience

Telehealth enables patients to remotely communicate with their healthcare providers, eliminating the necessity for travel and decreasing the time spent waiting. This proves particularly advantageous for patients who face challenges with mobility or have hectic schedules.

True Cost of Implementing a Telehealth System 1
Reasons to Consider Telemedicine System As an Opportunity
Expanding Access to Care

Telemedicine extends healthcare reach beyond geographical limitations. It brings medical guidance to rural and disadvantaged regions where the availability of high-quality healthcare is frequently restricted. 

Increasing cost savings

While the upfront cost of a telehealth system might be substantial, in the long run, it can reduce operational expenses. It reduces the requirement for physical space and allows healthcare providers to effectively organize their schedules.

Enhancing Continuity of Care

Regular follow-ups, mental health, and chronic disease management become more manageable with telemedicine, contributing to better health outcomes.

As these factors reveal, the telemedicine system offers not just a response to immediate crises, but a forward-looking solution that carries numerous advantages for both patients and physicians.

How Much Does Telemedicine Cost for Startups Or Small Healthcare Providers

Developing a telemedicine system is a step-by-step process, with each stage carrying its unique set of tasks and costs. Let’s walk through these stages and their corresponding costs:

The Discovery Stage

At this stage you start mapping out your telehealth project. Here, you undertake market research, analyze your target audience, and decide on the essential features of your telehealth system. This stage also includes the initial conceptualization of your system’s user interface and user experience (UI/UX) design. The cost of this stage can vary significantly depending on the project’s complexity, but you can generally expect to spend between $5,000 to $15,000

The Proof-of-Concept Stage

Next comes the Proof-of-Concept stage. This is when you develop a basic prototype of your telehealth system to validate your idea. It’s a critical step to ensure your concept works as expected before committing more resources. The cost of this stage varies, typically ranging from $20,000 to $50,000, depending on the intricacy of your system.

Development of a Minimum Viable Product (MVP)

The MVP stage is where your telemedicine system starts to take shape. An MVP is a basic version of your product, including only the most crucial features. This stage lets you test the market and gather user feedback for future refinements. The cost of developing an MVP hinges heavily on the chosen features, but you can expect to spend somewhere between $60,000 to $120,000.

Remember, these are just averages – actual costs may vary significantly based on your specific requirements, the complexity of the project, and the professionals or agencies you decide to work with.

The Basic Cost of Telehealth System Development

Building a telemedicine system can be likened to constructing a house—both processes involve various components and factors that can significantly influence the overall cost. For a telemedicine system, these factors include:

  • Type of Application: Just as the cost of building a bungalow differs from that of a mansion, the cost of developing a telehealth system varies based on whether it’s a mobile app, a web-based platform, or a comprehensive system that includes both.
What influence the Cost of Telehealth System Development
Type of Application (e.g. iOS or android mobile app, web-based platform)
Number and Complexity of Features
Team Composition
Technical Level and Previous Experience
  • Number and Complexity of Features: The more rooms in a house, the higher the cost. Similarly, the number of features you want in your telehealth system and their complexity directly impact the total development cost.
  • Team Composition: The makeup of your development team, including the number of developers, designers, project managers, and others, plays a crucial role in determining the telemedicine platform cost.
  • Technical Level and Previous Experience: The proficiency and experience of your team can greatly affect the development time and, consequently, the cost. A highly experienced team might command higher rates, but they can also deliver a more polished product in a shorter time frame.
  • Timeline: As with house construction, faster delivery times can drive up the cost of telemedicine software.

Given the various factors at play, the cost of telehealth implementation can fluctuate greatly. However, based on our experience and industry standards, you can expect to invest anywhere between $100,000 to $250,000 for a robust and comprehensive telehealth system.

Hidden Expenses For Telemedicine Startup Costs

Just like an iceberg, the upfront cost of a telemedicine system is often just the tip of the overall expense. Below the surface, there exist numerous concealed or supplementary expenses that necessitate your attention when devising the budget for your telemedicine startup. Let’s bring these frequently disregarded aspects into focus.

Hidden Expenses For Telemedicine Software Development
Medical Device or Feature Integration
Telemedicine Platform License
Communication Platform and Videoconferencing Tools
Telemedicine Support on Mobile Devices
Staff Training
Compliance with Telemedicine Regulatory Requirements
Telemedicine Equipment Costs
Medical Device or Feature IntegrationIntegrating medical devices or additional features into your telemedicine system can incur extra costs. This might include tools for capturing patient vitals or systems for managing electronic health records (EHR).
Telemedicine Platform LicenseThere’s often a recurring cost for using a telemedicine platform. This licensing fee is generally an annual or monthly expense and varies depending on the platform you choose. However, before committing to a platform, it’s crucial to take into account the considerations for building vs buying a telemedicine platform. Buying a platform is faster and requires less expertise, while building allows greater customization and control over the system to match your specific needs, brand identity, and growth plans.
Communication Platform and VideoconferencingRobust, secure, and compliant video conferencing tools are integral to telemedicine. Depending on the provider, these can either be a one-time purchase or require regular subscription payments.
Telemedicine Support on Mobile DevicesIf you decide to make your telemedicine services accessible on mobile devices, you’ll likely incur additional development and maintenance costs.
Staff TrainingYour staff needs to be trained to use the new system effectively, and this training and knowledge gained can be additional healthcare costs to factor into your budget.
Compliance with Telemedicine Regulatory RequirementsEnsuring your telemedicine system complies with healthcare laws and regulations like HIPAA in the US is vital. Depending on your country and state, meeting these standards could require a significant investment.
For detailed guidance on developing a HIPAA-compliant telemedicine platform, you can refer to our comprehensive guide How to Develop a HIPAA-Compliant Telemedicine Platform
Telemedicine Equipment Costs Don’t forget about the physical infrastructure needed to facilitate telemedicine. This includes high-quality video conferencing tools, specialized medical devices for remote patient monitoring, and potentially even dedicated servers for data storage. These costs can be substantial, especially if you’re aiming to provide a high-quality service.

Remember, a successful telemedicine startup isn’t just about setting up the software. These additional expenses are essential to the successful operation and growth of your telehealth service. It’s crucial to account for these when planning your overall budget to avoid any unpleasant financial surprises down the line.

So, how much does it cost to implement telemedicine?

To summarize, the cost of developing a telehealth system is a sum of several components, each contributing to the overall budget. Here’s a recap:

StageCost Range
Discovery Stage$5,000 to $15,000
Proof-of-Concept Stage$20,000 to $50,000
MVP Development$60,000 to $120,000
Full System Development$100,000 to $250,000

This table provides an overview of the cost of telemedicine apps. Please note, these are rough estimates and the actual costs can fluctuate based on many factors such as your specific needs, project complexity, technology used, and the development companies you choose to work with. Averaging these costs, a telehealth system can range from around $200,000 to $450,000 in total, accounting for both the development stages and the potential hidden costs.

For more detailed insights on how to develop a telemedicine app, visit our guide Telemedicine Platform Development.

How to Reduce the Cost of Telemedicine Software Implementation

Just as preventative care can save on healthcare costs in the long run, proactive planning can help reduce the cost of implementing telemedicine software. Here are a few strategies to keep your budget under control:

Minimize MistakesMistakes during the development process can lead to costly delays and revisions. One way to minimize these is to invest time and effort in the Discovery Stage. A thorough understanding of your target market, careful planning of your telemedicine system’s features, and detailed UI/UX design can prevent expensive pivots and overhauls down the line.
Choose a Quality Development PartnerThe right development partner can make a world of difference in the success of your project. Look for a team with a proven track record in telemedicine software development. They’ll bring invaluable expertise and experience to the table, helping you avoid common pitfalls and get the most out of your budget.
Implement in StagesInstead of developing a full-featured system right off the bat, consider a phased approach. Start with an MVP that includes only your core features, then expand and refine based on user feedback. This not only spreads out your expenses but also reduces the risk of wasting resources on unnecessary or poorly-received features.
Invest in TrainingTraining your staff to use the new system effectively can prevent costly mistakes and inefficiencies once your system is up and running. Although this incurs an upfront cost, it can save you money in the long run.
Stay Up-to-Date with RegulationsFailing to comply with healthcare regulations can lead to hefty fines. Stay abreast of the latest regulatory requirements for telemedicine in your area to avoid unexpected legal costs.

By being strategic and proactive, you can significantly reduce the cost of implementing your telemedicine system without compromising on its quality or effectiveness.

The Empeek Experience

At Empeek, we have spent years perfecting the art of telemedicine software development. Our expertise spans several projects, each with its unique requirements and challenges. This diverse experience has equipped us with a deep understanding of healthcare regulations, patient privacy, and the technical intricacies of building robust and user-friendly telemedicine systems.

EHR and Telehealth in a Single Platform

We developed a HIPAA-compliant EHR/EMR system for a US-based hospital, replacing their legacy software. This comprehensive solution integrates electronic health records with user-friendly telemedicine capabilities. The patient-focused platform improves treatment workflows, simplifies medical record inputs, and enhances the overall patient experience. Key features include care provider and patient portals, automated HIPAA compliance activities, one-click appointment scheduling, AI-powered data deduplication and reporting, billing and invoicing tools, and medical imaging and lab results notifications.

Wireless Medical Monitoring In Real-time

We designed a real-time medical monitoring system that captures, analyzes, and decodes patients’ vital signs and various psychological parameters. This IoT-based solution allows seamless monitoring and communication between hospitals, medical care providers, and health-conscious individuals. With features such as real-time data sync and instant sharing, personalized surveys, medication reminders, and smart notifications, this wireless medical monitoring system provides a seamless user experience. Additionally, it offers scalable cloud storage for secure data storage and accessibility.Throughout these projects, we have always prioritized collaboration with our clients.

BioBeat – HIPAA and HITECH compliant RPM Solution
Real-Time Medical Monitoring System

Our team prides itself on our ability to adapt to individual project needs and deliver tailored solutions that truly make a difference. To get a deeper understanding of the work we’ve done, we invite you to explore our case studies.


In this ever-evolving digital era, implementing a telemedicine system is no longer a luxury but a necessity. The cost of developing a telehealth system involves various stages, each with its associated expenses, from the discovery stage to the full system development and potential hidden costs. The telehealth adoption journey, although intricate, can be navigated with careful planning, thorough understanding, and a trustworthy partner. 

At Empeek, we are committed to guiding you through this journey, making it as smooth and rewarding as possible. With our extensive experience in telemedicine software development and client-centric approach, we can help turn your vision into a reality, creating a robust and efficient telemedicine system tailored to your needs.


Does telemedicine technology reduce costs?

Yes, telemedicine technology can significantly reduce costs. It can minimize the need for in-person consultations, save on transportation and infrastructural costs, and increase operational efficiency. It can also potentially reduce hospital readmission rates and enable better management of chronic diseases, leading to long-term healthcare cost savings. However, the initial setup and maintenance costs should also be factored in.

What does the cost of telemedicine software depend on?

The cost of telemedicine software depends on its complexity, the number of features, the level of integration with other systems, the team’s expertise, and the timeline for implementation.

Can Empeek help me calculate the approximate cost of implementing a telehealth system?

Yes, Empeek can help you estimate the approximate cost of implementing a telehealth system. Our team can assess your specific needs, desired features, and other factors to provide a detailed cost analysis.

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Written by:
Alex Shpachuk Alex Shpachuk CEO
Alex Shpachuk is the owner and strategic partner of Empeek. His effective leadership and a visionary approach to the future of healthcare turned the company into a dynamic environment attracting the brightest minds with the common vision for product impact and service excellence. With over a decade of experience in software engineering and comprehensive knowledge of designing and deploying tailor-made solutions for healthcare providers, Alex channels his passion for software development and consulting into the written word.

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