6 Reasons Why Telecare-USA Uses a Flat-Fee RPM Model — and Why It Matters for Compliance

When it comes to Remote Patient Monitoring (RPM) services, the way providers and service companies structure their agreements isn’t just a matter of preference — it’s a matter of federal law. At Telecare-USA, compliance is our top priority, which is why we never offer percentage-based or “no-pay-if-denied” RPM compensation models.

Here’s why these arrangements can put your practice at risk — and why our flat-fee structure keeps you protected.

1. Federal Law Prohibits Outcome-Based Compensation Tied to Medicare Claims

Federal laws such as the Anti-Kickback Statute (42 U.S.C. §1320a–7b(b)) and the Stark Law (42 U.S.C. §1395nn) prohibit any arrangement where compensation is tied to the value or volume of Medicare-reimbursed services.

This includes RPM services billed under CPT codes like 99453, 99454, and 99457. Structuring your payments based on the reimbursement amount or claim outcomes can violate these laws — even if the services provided are completely legitimate.

2. Percentage-Based Fees Raise Kickback and Referral Concerns

If a service company charges a percentage of what you receive from Medicare or Medicare Advantage plans, regulators may view that as “remuneration” — essentially a financial incentive to refer services.

Even if the intention is simply to share revenue, the government sees this as a compliance red flag.

3. “No-Pay-if-Denied” Models Are Risky and Potentially Illegal

Some RPM providers waive their fees when a claim is denied, which might seem like a customer-friendly policy. However, this can be interpreted as offering a financial inducement and can run afoul of fair market value requirements under AKS and Stark Law.

4. CMS and OIG Require Fair Market Value Compensation

The Centers for Medicare & Medicaid Services (CMS) and the Office of Inspector General (OIG) have made it clear:

• Compensation must be set in advance
• It must be commercially reasonable
• It cannot be tied to reimbursement amounts

Only flat-fee agreements meet this standard without creating unnecessary risk.

5. Protecting You (and Us) from Audits and Penalties

Improper compensation models can lead to:

• Investigations by regulators
• Audits of your Medicare billing
• Significant financial penalties
• Damage to your reputation

At Telecare-USA, we protect your practice by ensuring our contracts are fully compliant from day one.

6. Our Flat-Fee Model: Transparent, Compliant, and Risk-Free

We charge a fixed monthly fee per enrolled patient for RPM services. If we don’t perform the services and obtain a billable code for you, you won’t be charged — because we didn’t deliver the work you were expecting.

This ensures:

• You keep 100% of your reimbursements
• We stay within federal compliance guidelines
• You enjoy peace of mind knowing you’re protected

Bottom line: Compliance isn’t optional — it’s essential. By choosing a flat-fee RPM partner like Telecare-USA, you safeguard your practice from legal pitfalls while ensuring sustainable, compliant growth.

Want to learn more about how our RPM programs protect your practice while delivering real results?

Contact Telecare-USA today to schedule a consultation.

Ready to Setup Your Clinic?

Just click the link below to talk to a member of our sales team or to learn more about our Remote Patient Monitoring solution and get your clinic started in no time.