Building a sustainable telehealth business model requires more than video call software. Australian GPs must navigate MBS billing rules, clinical governance requirements, and patient consent frameworks to deliver compliant remote care that generates reliable revenue. Whether you are launching a standalone telehealth practice or adding virtual consultations to an existing clinic, understanding the financial and regulatory foundations is essential.
HCPA, as Regulatory Growth Consultants for healthcare providers across Australia, has supported dozens of practices in structuring telehealth operations that meet Medicare compliance standards while maximising billable activity. This guide covers every element of the telehealth business model, from revenue streams and MBS item selection to hybrid clinic design and technology infrastructure.
Why Telehealth Is a Core Revenue Channel for GP Practices
Telehealth is no longer an emergency measure. Since the permanent inclusion of telehealth MBS items in 2022, virtual consultations have become a structural part of general practice revenue. Patients expect the option, and practices that offer it capture a broader geographic market without increasing physical overhead.
For practice owners, the economics are compelling. Telehealth consultations carry lower marginal costs than in-person visits because there is no need for additional consulting rooms, cleaning between patients, or reception desk time. A GP conducting back-to-back telehealth appointments can see more patients per hour while maintaining clinical quality, provided the consultation type is appropriate for remote delivery.
The key is building a model that balances telehealth efficiency with clinical safety. Not every presentation suits a video call, and Medicare’s billing rules reflect this. Understanding which consultations qualify for telehealth MBS items, and which require face-to-face attendance, is the foundation of a compliant and profitable telehealth business model. For a detailed breakdown of eligible item numbers, see our guide to telehealth MBS items for GPs.
Core Components of a Telehealth Business Model
Revenue Streams and MBS Billing
The primary revenue source for GP telehealth is Medicare Benefits Schedule billing. Video consultations and phone consultations each have distinct item numbers with different rebate values. Video items generally attract higher rebates than phone-only items, reflecting the clinical value of visual assessment.
Key billing considerations include patient eligibility requirements, the existing relationship rule (patients must have attended the practice in person within the preceding 24 months), and the distinction between standard and long consultations. Practices that train their GPs on correct item selection and documentation can significantly increase per-consultation revenue without additional clinical time.
Beyond standard consultations, telehealth opens revenue from chronic disease management plans (GPMPs and TCAs), mental health treatment plans, and health assessments where a video component is clinically appropriate. Each of these carries higher MBS rebates and builds recurring patient engagement.
Technology Platform Selection
Your telehealth platform must meet several non-negotiable requirements. It must be end-to-end encrypted, integrate with your practice management software (Best Practice, MedicalDirector, or similar), and support Medicare claiming workflows. The platform should also generate appointment records that satisfy audit requirements.
Popular options for Australian GP practices include Coviu, HealthDirect Video Call, and integrated solutions within existing PMS platforms. The right choice depends on your practice size, patient demographics, and whether you need features like waiting rooms, screen sharing for results review, or multi-party consultations for care team meetings.
Clinical Governance and Consent
Every telehealth consultation requires informed patient consent that covers the limitations of remote assessment, data privacy, and the circumstances under which the GP may require an in-person follow-up. This consent should be documented in the patient record and refreshed periodically.
Your clinical governance framework must also address prescribing protocols for telehealth (particularly Schedule 4 and Schedule 8 medications), escalation pathways when a patient needs emergency care during a virtual consultation, and record-keeping standards that satisfy both RACGP and Medicare audit requirements. Ensuring your practice meets RACGP standards for general practice is equally important for telehealth as it is for in-person care.
Hybrid vs Pure Telehealth Models
Most successful Australian GP practices operate a hybrid model that combines in-person and telehealth consultations. This approach maximises flexibility for patients and GPs while ensuring clinical safety for presentations that require physical examination.
The Hybrid Model
In a hybrid model, patients can book either telehealth or in-person appointments based on their clinical needs. Routine follow-ups, medication reviews, mental health check-ins, and results discussions are ideal for telehealth. New patient assessments, acute presentations requiring examination, and procedural appointments remain face-to-face.
The financial advantage of the hybrid model is increased consulting room utilisation. When a GP spends two hours on telehealth appointments, their consulting room is available for another practitioner. This effectively increases practice capacity without expanding the physical footprint, which directly impacts GP clinic profitability.
The Pure Telehealth Model
A pure telehealth practice operates without a physical clinic. While this dramatically reduces overhead costs (no rent, fit-out, or front desk staff), it also limits the types of consultations you can offer and restricts access to certain MBS items that require in-person attendance.
Pure telehealth models work well for niche services like mental health, sexual health consultations, and chronic disease management where physical examination is rarely required. However, the existing relationship rule means you will still need a pathway for initial in-person consultations, which may involve partnerships with co-located practices or visiting clinic arrangements.
Financial Planning for Telehealth Services
Startup Costs
Launching telehealth services within an existing practice requires relatively modest investment. Budget for a reliable video platform subscription ($50 to $300 per month depending on features), high-quality webcams and headsets for each consulting room, upgraded internet connectivity (fibre with a business-grade SLA is recommended), and staff training time.
For a standalone telehealth practice, additional costs include practice management software licensing, GP clinic registration, Medicare provider number applications, and professional indemnity insurance that explicitly covers telehealth consultations. A comprehensive understanding of GP clinic setup costs will help you budget accurately even for a virtual-first model.
Revenue Projections
A GP conducting four telehealth consultations per hour at an average MBS rebate of $39.75 (Level B equivalent) generates approximately $159 per hour in Medicare revenue alone. With mixed billing, where suitable patients pay a gap fee, hourly revenue can reach $200 to $280.
Compared to in-person consultations, telehealth margins are typically higher because variable costs per consultation are lower. There is no room cleaning, no consumables, and reduced reception overhead. The trade-off is that telehealth consultations tend to be shorter, which can mean lower per-consultation rebates if GPs default to shorter item numbers.
Compliance and Medicare Audit Readiness
Medicare compliance is the single biggest risk area for telehealth practices. The Department of Health actively audits telehealth billing patterns, and practices with unusual claiming profiles attract scrutiny. Common triggers include high volumes of phone-only consultations, billing for long consultations without supporting documentation, and claiming telehealth items for patients who do not meet the existing relationship requirement.
Protect your practice by implementing robust documentation standards. Every telehealth consultation should record the clinical reason for the consultation, the mode of delivery (video or phone), patient consent, clinical findings, management plan, and the rationale for the MBS item selected. Automated templates within your PMS can streamline this process without adding clinical time.
Regular internal audits of telehealth billing patterns help identify issues before Medicare does. Review claiming data quarterly, compare your practice’s telehealth-to-face-to-face ratio against industry benchmarks, and ensure all GPs understand the documentation requirements for each MBS item they bill. Understanding your Medicare provider number obligations is a fundamental part of this compliance framework.
Scaling Your Telehealth Operations
Once your telehealth model is established and compliant, scaling involves three key levers. First, expand your GP workforce with practitioners who are comfortable with virtual consultations. Second, extend operating hours, as telehealth is particularly suited to early morning, evening, and weekend sessions that patients value highly. Third, consider geographic expansion by accepting patients from regions with limited GP access, provided you maintain the existing relationship requirement through periodic in-person visits or partnership arrangements.
Technology investment at scale includes automated appointment reminders, patient-facing portals for uploading documents and photos before consultations, and analytics dashboards that track consultation volumes, billing patterns, and patient satisfaction scores. These systems reduce administrative overhead and improve the patient experience as your telehealth volume grows.
For practices looking to optimise both their in-clinic and telehealth revenue streams, working with experienced consultants ensures your business model is structured for long-term growth. Talk with our consultants to get Regulatory Growth guidance tailored to your telehealth strategy.
