States tighten rules on corporate telehealth, targeting business structures behind direct-to-consumer care

Telehealth has grown into a multibillion‑dollar industry, with brands like Hims & Hers and Teladoc becoming widely recognized.

Despite their visibility, many patients are unaware that corporate telehealth firms cannot directly practice medicine in most states.

Over 30 states prohibit corporations from providing medical care, so companies partner with independent physician‑owned groups that hold multiple state licenses to serve as a legal firewall.

Lawmakers are increasing scrutiny of these corporate structures, aiming to ensure clinical decisions remain patient‑focused rather than driven by business interests.