Unlocking New Revenue Streams: How Healthcare Organizations Can Thrive with Ancillary Services and Telehealth

Explore how strategic expansion into ancillary services and telehealth can strengthen your financial future and enhance patient care.

At BHS Connect, we support healthcare organizations across the country in a Release of Information capacity. Through that partnership, we’ve had a front-row seat to how high-performing teams are navigating today’s financial pressures—not just by cutting costs, but by expanding into smarter, more sustainable revenue streams.

Drawing from these real-world examples, the BHS Connect team has pulled together practical strategies to help finance leaders tap into the power of ancillary services and telehealth—building more sustainable operations and improving patient access along the way.

We’ve learned that revenue diversification isn’t just a smart option; it’s becoming a critical strategy. By expanding into services that meet both clinical and financial goals, organizations are staying competitive, strengthening their infrastructure, and creating more room to thrive.

When patients can access more services in one place, they’re more likely to stick with a provider they trust.

Why Diversification Matters for Financial Stability

Depending entirely on traditional fee-for-service reimbursements is like walking a financial tightrope—one shift in policy, an economic downturn, or a change in payer rules, and the stability of an organization can be at risk. Diversifying revenue isn’t just a smart move; it’s essential for long-term security.

By adding new income streams, healthcare organizations can better weather reimbursement changes and industry disruptions. It’s not just about staying profitable—it’s about building a stronger, more resilient organization. Expanding services also increases an organization’s overall value, making it more attractive for future growth, partnerships, or even potential acquisitions.

There’s another benefit, too. When patients can access more services in one place, they’re more likely to stick with a provider they trust. That leads to stronger patient relationships, better health outcomes, and steady business growth. For further insight, Provider Magazine’s Supplying the Right Mix of Ancillary Services shares some benefits and considerations for adopting ancillary services.

Ancillary Services: Expanding In-House Offerings

Healthcare organizations have a real opportunity to strengthen both patient care and financial stability by offering ancillary services. These additions go beyond convenience—they improve outcomes, streamline operations, and create new revenue streams.

Take diagnostic imaging, for example. Having in-house X-rays, MRIs, and ultrasounds means faster diagnoses and more efficient treatment plans. Patients get answers sooner, care teams can act quickly, and the organization benefits from additional billable services. On-site laboratory testing offers similar advantages. Faster results mean less waiting, smoother workflows, and a better overall experience for both patients and providers.

For organizations treating musculoskeletal conditions, physical therapy and rehabilitation services are a natural extension of care. These services not only help patients recover more effectively, but they also provide a reliable source of revenue—making them a strategic investment in long-term financial health.

Key Considerations for Implementing Ancillary Services

• Regulatory Compliance: Many ancillary services are subject to Stark Law and Anti-Kickback Statute regulations. Understanding the legal landscape is essential before launching a new service line.
• Initial Investment and ROI Analysis: organizations benefit from weighing the upfront cost of equipment, space, and staff against potential returns. A financial feasibility study ensures sustainable implementation.
• Payer Reimbursement: Not all insurance plans reimburse ancillary services at the same rate. It’s beneficial for organizations to evaluate which services align with their patient population and payer contracts.

For some traditional considerations for adding ancillary services to your organization, refer to this helpful checklist put together by the American Medical Association.

Telehealth has evolved from a temporary fix to a fundamental part of modern healthcare.

Telehealth: A Permanent and Profitable Shift

Telehealth has evolved from a temporary fix to a fundamental part of modern healthcare. Organizations that embrace it strategically aren’t just expanding patient access—they’re tapping into new revenue opportunities that also enhance patient care.

Telehealth isn’t just about virtual visits. It creates multiple income streams while improving healthcare delivery. Chronic Care Management (CCM) allows providers to stay connected with patients who have chronic conditions, ensuring ongoing support while securing reimbursements from Medicare and private insurers. Remote Patient Monitoring (RPM) takes this a step further by using wearable technology to track vital signs in real time. This proactive approach helps catch potential issues early while generating steady revenue through monthly monitoring fees (Telehealth.HHS.gov Fact Sheet).

Expanding access to specialists through telehealth is another smart move. By offering remote consultations, organizations can provide a broader range of services without the overhead of additional office space. That means better access for patients, improved care coordination, and stronger financial returns for the organization.

Successfully integrating telehealth into a healthcare organization goes beyond simply offering virtual visits. It requires a solid grasp of reimbursement rules, compliance requirements, and patient engagement strategies to make it both effective and financially sustainable.

Reimbursement can be a major advantage—many payers offer virtual visit rates comparable to in-person appointments. But policies vary, and keeping up with state and federal regulations is key to ensuring proper billing and maximizing revenue. Equally important is investing in a secure, HIPAA-compliant telehealth platform. Strong data security measures aren’t just about compliance—they build patient trust and support high-quality care. 

Patient adoption is another critical factor. Even the best telehealth system won’t succeed if patients don’t use it. Educating them on how easy it is to access, what services are covered by insurance, and how it fits into their overall care plan can drive engagement and make virtual visits a seamless part of their healthcare experience.

One helpful guide the BHS Team recommends is the AMA’s Telehealth Implementation Playbook. It offers insights on evaluating vendors, preparing the care team, patient adoption, designing the workflow, as well as post implementation resources.

Introducing new services isn’t just about expansion; it’s about making smart, strategic moves that ensure long-term success.

Implementing Alternative Revenue Streams Successfully

Introducing new services isn’t just about expansion; it’s about making smart, strategic moves that ensure long-term success. Careful planning, financial foresight, and operational adjustments are all essential. A structured approach helps organizations launch smoothly, integrate services effectively, and build a sustainable model for growth.

1. Conduct a Market and Financial Analysis

Before rolling out new services, it’s important to understand what patients actually need. A feasibility study can help identify which offerings will provide the greatest value—both for patient care and financial sustainability. Key factors to consider include:

• Patient demographics and service utilization trends - Understanding who your patients are and what they need is essential when expanding services. Data from the Centers for Disease Control and Prevention (CDC) shows that adults aged 55 to 64 visit healthcare providers more than any other group, often due to chronic conditions like diabetes (New York Post). This highlights the importance of offering targeted services that support ongoing care for these patients. Beyond age, socioeconomic factors play a major role in healthcare access. Income levels, education, and employment status all influence a patient’s ability to seek and afford care, shaping service demand. Cultural and ethnic backgrounds also impact health behaviors and preferences, making it crucial for organizations to develop culturally sensitive services that promote equitable access to care. By analyzing these trends, healthcare organizations can ensure their services align with patient needs, ultimately improving both health outcomes and financial sustainability.

• Competitive analysis—identifying gaps in the local healthcare market - To grow and stand out, healthcare organizations need to understand the competitive landscape. Analyzing what other providers offer can reveal two key insights—where demand is high and where there are gaps in care. If certain specialties are oversaturated, adding another similar service may not be the best move. Instead, focusing on areas with unmet needs allows organizations to develop services that fill those gaps and attract more patients. Beyond service offerings, looking at publicly available patient satisfaction and health outcome data can provide a competitive edge. If competitors struggle with long wait times, lack of follow-up care, or patient engagement, these weaknesses present an opportunity. By addressing these gaps and delivering a better patient experience, organizations can differentiate themselves and build lasting patient loyalty.

• Cost-benefit analysis for technology, staffing, and equipment  - Conducting a thorough cost-benefit analysis is essential when considering a new service. Direct costs—such as materials, equipment, staff salaries, and overhead—need to be carefully assessed to determine financial feasibility. But the expenses don’t stop there. Indirect costs, like administrative support and facility maintenance, can add up quickly and have a significant impact on overall spending. Intangible factors matter too. Staff morale, patient satisfaction, and the organization’s reputation within the community all play a role in long-term success. A well-planned service can strengthen patient loyalty and boost engagement, while a poorly integrated one can create operational strain. Finally, estimating return on investment (ROI) provides a clear picture of a service’s financial sustainability. A strong ROI points to a smart, long-term opportunity, while a negative projection may signal the need for a reassessment before moving forward.

2. Address Staffing and Training Needs

Expanding services often means investing in your team—whether through additional training or new hires. Well-prepared staff ensure high-quality care, smooth operations, and a better patient experience. To set your team up for success, consider these best practices:

• Providing continuous education on compliance, billing, and service implementation.
• Hiring specialists or certified professionals when required (e.g., physical therapists, lab technicians).
• Allocating adequate time for staff to adapt to workflow changes.

By focusing on these areas, healthcare organizations can successfully expand their services while maintaining compliance and delivering high-quality patient care.

3. Ensure Regulatory Compliance and Insurance Alignment

Legal and insurance considerations are key to ensuring new service lines operate smoothly and remain compliant. To protect the organization and provide seamless care, it is helpful to:

• Review Stark Law and Anti-Kickback regulations before implementing ancillary services.
• Work with insurers to verify reimbursement structures and billing codes.
• Maintain HIPAA compliance for all patient data associated with telehealth and ancillary services. For guidance, see HHS.gov’s HIPAA and Telehealth. 

By diligently addressing these regulatory and insurance considerations, healthcare organizations can expand their services responsibly, enhance patient care, and uphold the integrity of their operations.

For healthcare organizations, relying solely on traditional billing models is no longer enough to ensure financial stability.

Final Thoughts

For healthcare organizations, relying solely on traditional billing models is no longer enough to ensure financial stability. By strategically incorporating ancillary services and telehealth, organizations can diversify revenue, improve patient satisfaction, and enhance long-term sustainability.

Those willing to adapt and innovate will not only survive but thrive in the evolving healthcare economy. The key is to approach diversification with a clear strategy—conducting thorough financial analysis, ensuring regulatory compliance, and aligning new services with patient needs.

BHS partners with leading healthcare organizations to provide a full range of no-cost Release of Information (ROI) services supporting Medical Records and Health Information Management teams.

If someone on your team would like to explore how we can support your facility, please feel free to reach out. We’d be happy to share more details and answer any questions.