Cuvo Health Report: 33 Jurisdictions Restrict Corporate Practice of Medicine for Virtual Clinics
Cuvo Health's new report reveals that 33 out of 51 U.S. jurisdictions impose restrictions on the corporate ownership of virtual clinics, complicating national expansion for telehealth providers.
Cuvo Health, a white-label telehealth platform operated by Medstra Inc., released its 2026 State-by-State Virtual Clinic Compliance Report on September 27, 2026. The comprehensive dataset covers all 50 states and the District of Columbia, detailing how state licensing, practice ownership, and scope-of-practice rules impact the launch and operation of telehealth brands.
The report's key finding highlights significant regulatory hurdles, with 33 jurisdictions enforcing restrictions on the corporate practice of medicine (CPOM). Only 18 states have no general prohibition, making it challenging for non-physician founders to establish national telehealth services. Furthermore, only 14 states offer out-of-state physicians a simple telehealth registration or telemedicine license, short of full licensure.
Compiled from primary sources including interstate compact commissions and state statutes, the report also details the costs associated with compliance. Obtaining a physician license through the Interstate Medical Licensure Compact across all 41 participating states can cost over $18,500 in initial fees. The report also notes varying levels of practice authority for nurse practitioners, with 28 states granting full authority, while others impose restrictions.
Fen Haines, Vice President of Operations at Cuvo Health, emphasized the complexity faced by startups. "Every founder we speak with asks how fast they can launch nationally, and the answer depends on 51 separate rulebooks," Haines stated. The report aims to equip founders with the necessary information to navigate these diverse regulatory landscapes.
The report also touches upon federal requirements, such as HIPAA breach notification rules, and the temporary flexibilities for prescribing controlled substances via telehealth. Cuvo Health offers its platform as a solution, providing a network of over 300 licensed clinicians and compliant infrastructure to help brands launch efficiently.