The Boom in Out-of-State Telehealth Threatens In-State Providers

Kaiser Health News reports that while the COVID-19 pandemic has fueled wide adoption of telehealth across the United States, there have been unforeseen consequences, including clashes between out-of-state and in-state health providers. For example, Montana's deployment of telehealth services from the Minnesota-based Hazelden Betty Ford Foundation caused leading Montana health provider Rimrock to worry that a flood of out-of-state providers could poach its privately insured patients. The foundation's Bob Poznanovich said, "We've heard grumblings, like 'Why are you coming into our state?'" but "more people have welcomed the entry into the marketplace because they think that we will help create a bigger marketplace." Florida radiologist Ashley Maru expects the telehealth rush will permanently change healthcare, potentially addressing a national shortage of doctors. However, Blue Cross and Blue Shield of Montana's John Doran is concerned that an influx of out-of-state telehealth providers could hurt local providers or force them out of business, especially in smaller states. Meanwhile, a New England Journal of Medicine article suggests the rapid uptake of telemedicine could exclude vulnerable people with limited Internet access or tech literacy, including seniors, the poor, and non-English speakers.