STAT+: Online care is caught in the crossfire as states crack down on corporate medicine

STAT PlusHealth tech Online care is caught in the crossfire as states crack down on corporate medicine By Katie PalmerJune 2, 2026 Palmer is investigating how telehealth is driving the consumerization of drugs. This is Part 5 of the series The VirtualRx Boom. Katie Palmer[email protected]Katie covers the impact of health technology on patients, clinicians, and businesses. Her stories explore the price tag of clinical AI, digital health at the FDA, and the boom in direct-to-consumer telehealth. Confidential tips can be sent on Signal at palmer.01. Manage alerts for this article Email this article Share this article In less than a decade, telehealth has expanded from a sideshow of health care to an industry worth tens of billions of dollars. Companies like Hims & Hers and Teladoc have become household names, their ads interrupting streaming TV and flooding social media feeds with the promise of quick, convenient care. Despite their popularity, few patients understand who’s actually taking care of them when they click through a telehealth site. Advertisement National telehealth brands present a unified front to patients across the country. But in more than 30 states, it’s illegal for corporations to practice medicine. So behind the scenes, telehealth companies work with distinct, independent medical groups. Owned by physicians — who often hold 50 state licenses at once — those practices are meant to act as a firewall, making sure that clinical decisions are driven by patients’ needs, not the profits of the corporations they deal with. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In health tech, legal, STAT+, Telehealth Submit a correction requestReprints Katie Palmer Health Tech Correspondent Katie covers the impact of health technology on patients, clinicians, and businesses. Her stories explore the price tag of clinical AI, digital health at the FDA, and the boom in direct-to-consumer telehealth. Confidential tips can be sent on Signal at palmer.01. Recommended First Opinion June 2, 2026 The virtual end of the doctor’s office waiting room Health June 1, 2026 STAT Plus: Trump administration releases rules for new Medicaid work requirements Advertisement Pharmalot June 1, 2026 STAT Plus: Eli Lilly warns hospitals to submit claims data in the next five days or lose their 340B drug discounts In the Lab June 1, 2026 STAT Plus: Global coalition to fast-track three vaccines targeting Ebola outbreak with $62 million in funding Biotech June 1, 2026 STAT Plus: Abivax ulcerative colitis drug shows strong efficacy, but cases of cancer raise concerns Subscriber Picks