Common RPM Pricing Models for Providers: A Profitability-Focused Guide

Remote Patient Monitoring (RPM) has rapidly emerged as one of the leading programs for providers trying to improve patient outcomes while generating the most stable and recurring revenue stream. With Medicare and many private insurers reimbursing rates between $120 and $200 per patient per month, a good RPM program can make a substantial difference in the financial well-being of a practice.

However, the truth is that not all RPM pricing models are alike. The way you set up your RPM program, whether relying a lot on a vendor or if everything is handled internally, will dictate your practice’s profit margins, operational burden, and future scalability of the program.

Let’s take a look at the four most popular RPM pricing models, thoroughly examining how they function, the cost of implementation, and ultimately, what they mean for your practice’s bottom line.

A. Turnkey Vendor Model

The turnkey vendor model is the lowest-touch model for providers. In this model, the vendor takes responsibility for all aspects of the RPM program. They provide everything to get your program launched, including the monitoring devices, which are FDA-approved (i.e., blood pressure cuffs, glucose meters, scales, etc.), a software platform to transmit data that is HIPAA compliant for all reporting and connectivity purposes, and, lastly, they provide clinical staff to monitor patients.

• The vendor provides all devices, software, and monitoring staff.
• Flat fee or a desired % of reimbursement earned (e.g., 70/30).
• Low provider involvement and improved scalability.
• Lower margins for delivery and less control.

This means the provider’s role is straightforward: identify and enroll eligible patients. The vendor team then handles daily monitoring, reviewing vitals, interacting with patients when readings go outside of defined parameters, and documenting the time spent for any potential CMS billing requirements.

From a financial standpoint, a turnkey program typically uses either a flat fee for every enrolled patient or a flat revenue share. In a revenue share arrangement, the reimbursement is then split, either 70/30 or 80/20, to the provider. If, for example, CMS were to reimburse $150 per patient each month, you might keep $105 while the vendor company keeps $45.

Ultimately, the big incentive here is ease of use. For instance, a small primary care clinic could implement RPM for 100 patients and would not have to hire staff or build any type of infrastructure. The downside of ease is that it comes with lower profit margins and limitations on the control over your patient interactions. You are relying upon an outsourcing team to represent your practice, which not only might be less personalized to patients but also potentially jeopardizes the continuity of care.

The turnkey RPM model is a solid option for any provider looking to launch RPM quickly, especially if they do not have the staff capacity to exempt those associated roles. It generates a steady new stream of revenue while only having nominal operational burdens.

B. Hybrid Model

The hybrid model is frequently viewed as the best compromise between vendor assistance and provider independence. In the hybrid model, the vendor is still providing the devices and the software platform, but your institution’s internal staff is monitoring patients, communicating with patients, and documenting time for billing.

What does that look like? Rather than offloading everything to an outside call center or nursing staff, your medical assistants, nursing staff, or care coordinators are reviewing vitals daily and reaching out if needed. Patients enjoy hearing from a familiar voice, and your practice has full visibility into the workflows, escalations, and quality of care.

• Provider utilizes vendor platform and devices, but monitors with its own staff.
• Platform + device fee with lower operational costs.
• Better ROI and higher control on the dashboard.
• Internal resources needed.

From a monetary perspective, this model is more profitable than turnkey because you are not paying the vendor part of your reimbursement. You simply pay device costs (often per patient) and platform licensing fees, which can be billed per provider or per patient per month. Since you are doing the monitoring, your margins stay higher. For example, if you are getting reimbursed $150 per patient and vendor costs are $30 for the patient, you net $120, which is a greater take-home than the previous example under turnkey.

As a whole, the use of a hybrid approach resonates well with practices that want to achieve greater profitability while still taking advantage of vendor-driven technology and logistics. This model allows the practice to maximize the equilibrium of control, scalability, and patient engagement while still requiring a certain buy-in or commitment from the practice internally.

C. In-House / Do-It-Yourself (DIY) Model  

The DIY model is the most independent and profitable model for providers. Under this model, the provider organization assumes total responsibility for every component of the RPM program. Devices are bought from the manufacturers, RPM software platforms are either fully developed in-house or are seamlessly integrated with the existing EHR, and monitoring can be done completely in-house.

This model elevates RPM from just a service that benefits your patients to a service line that is a true internal service line. You can create workflows that integrate with your clinical workflow, you can brand the program with your name, and you can keep all revenue generated by the RPM program. For example, if CMS independently reimburses you $150-200 per patient, for each patient under management, nearly all of those dollars are going to be kept by your practice, less the fixed costs associated with maintaining technology and payroll for staff.

• Provider purchases devices and utilizes existing workflows and clinical processes.
• Highest start-up cost but lowest operational fee.
• Controls reimbursement and allows creating a customized workflow.
• Technology infrastructure and clinical bandwidth are needed.

The upside is clear; profits are maximized! An example of a health system managing 1,000 patients could be looking at net monthly RPM revenue of $140,000-$180,000. That is a multi-million-dollar opportunity over the course of a year!

But these difficulties can be considerable. Establishing a DIY program often includes large capital expenses, usually tens of thousands of dollars for devices, IT infrastructure, and support staff training. Even then, the operating expenses will include salaries for the staff, patient compliance management, and technology upkeep. Also, building a program takes time. It is not unusual for a (DIY) RPM system to develop over several months to put the different pieces together.

This model is best suited for larger organizations such as hospitals or Accountable Care Organizations (ACOs), which already have considerable clinical infrastructure as well as IT infrastructure already established. For those providers, RPM becomes a planned initiative whose use grows over time.

D. Subscription (Per Patient Per Month- PPPM) Model

The subscription model is one of the simplest payment types available in RPM. This method charges providers a straightforward monthly fee per patient, typically $40 – $80 in the range that covers devices and/or services, platform access, and, in some instances, monitoring services.

This model is fairly simple for providers to understand: you know exactly how much each patient costs on a monthly basis, and you can easily calculate profit margins. Since CMS reimbursement is between $120 and $200 per patient per month, generally, you have a net profit of between $40 and $160 per patient after vendor fees and costs.

• This subscription-based model comes with vendor charges: $40-$80 (PPPM) per patient for full service (device, platform, monitoring)
• Provider bills CMS: $120-$200 per patient.
• Profit margin: $40-160 PPPM.

For example, if your vendor charges $60 PPPM, and you bill $160 PPPM, then your profit margin is $100 per patient. If you have 500 patients, that becomes $50,000 net per month. The scalability is straightforward and predictable, which is attractive for practices looking to dip their toe into RPM without being too risky.

The negatives with this model are limited flexibility and capped margins, since you will be locked into the vendors’ fee structure and limited in the amount of profit you can deliver and realize. Depending on your vendor, scaling up to more patients can be limited, and also customizing workflows can sometimes be non-existent.

That said, the subscription model may be the best fit for small to mid-sized practices that want a quick and smooth entry into RPM. Predictable and profitable, the subscription RPM model can deliver a very clear financial path for RPM growth without any heavy start-up costs otherwise found in the consultant or billable model.

Which RPM Model Delivers the Best Profitability For Healthcare Providers?

The fact is that profitability is somewhat subjective and dependent on the size of the practice, the population of patients, and resources.

• Turnkey models are the quickest to implement but provide the lowest margins. It is a good approach for small clinics just getting started with remote monitoring.  The profitability for 500 enrolled patients at an average reimbursement amount of $150 for a Turnkey Model is $52,500 net monthly revenue.
• Hybrid models are in the middle; they provide better ROI while also only requiring partial vendor support. The profitability for 500 enrolled patients at an average reimbursement amount of $150 for a Hybrid Model is $60,000 net monthly revenue.
• DIY models are the gold standard of profitability but require significant investment and organizational commitment. The profitability for 500 enrolled patients at an average reimbursement amount of $150 for a DIY Model is $75,000-$90,000 net monthly revenue.
• Subscription models are easy and predictable, best suited for practices that are looking for a safe and scalable first step. The profitability for 500 enrolled patients at an average reimbursement amount of $150 for a Subscription Model is $40,000-$80,000 net monthly revenue.

What Providers Need to Keep in Mind in Terms of RPM Profitability?

For providers, RPM is more than just a compliance driven program; it is a financial strategy. The pricing model selected may determine if RPM is a supplemental revenue stream or a primary service line with revenue in the six or seven figures range annually.

• If your goal is to get started quickly with minimal disruption → select Turnkey or Subscription.
• If your goal is increased profitability with minimal vendor involvement → select Hybrid.
• If your organization is prepared to fully embrace RPM as a long-term service line → select the DIY model.

The only thing you need to determine is how you align your pricing model with your practice’s ability to offer staffing, IT, and even patient engagement, as well as your financial expectations. Once you create that alignment with RPM, you will be able to achieve better patient outcomes and ongoing recurring revenues.

Conclusion

Remote Patient Monitoring has shifted from an optional enhancement to a strategic, revenue-generating service line that can reshape how providers deliver care. As CMS reimbursement continues to support RPM through consistent monthly payments of $120–$200 per patient, the pricing model you choose becomes the single greatest determinant of your program’s profitability, scalability, and operational efficiency.

Each RPM model comes with clear advantages: Turnkey models offer unmatched convenience, Subscription models provide predictability, Hybrid  models strike the ideal balance between control and profitability, and DIY approaches unlock the highest long-term financial return. Ultimately, the best model depends on your organization’s readiness—your staffing resources, IT infrastructure, patient population, and financial appetite for investment.

What matters most is alignment. When your RPM pricing model aligns with your clinical workflow, team capabilities, and revenue expectations, RPM evolves into far more than a reimbursement opportunity—it becomes a powerful tool to improve outcomes, reduce unnecessary utilization, and build a sustainable recurring revenue engine. Providers who make thoughtful, data-driven decisions today will be the ones best positioned to scale RPM

Frequently Asked Questions (FAQs)