Remote Therapeutic Monitoring: The Hidden $500M Revenue Stream for Clinics in 2026

If you run a physical therapy practice, an orthopedic clinic, or a pain management center, you likely have a problem: you only get paid when the patient is in the room.

But patients spend 99% of their recovery time outside your clinic. They struggle with home exercises, forget medication protocols, or experience pain spikes that you don't hear about until the next visit—often weeks later.

Enter Remote Therapeutic Monitoring (RTM).

RTM bridges that gap. It allows you to monitor non-physiologic data—like exercise adherence, pain levels, and functional status—and, crucially, get reimbursed for it.

The U.S. RTM market is projected to hit nearly $1 billion by 2030, with 2026 marking a critical tipping point as CMS expands billing codes to make adoption easier than ever.

This isn't just "another tech trend." It is a structural shift in how musculoskeletal (MSK) and respiratory care is delivered and billed. Here is your complete guide to unlocking this opportunity.

What Actually Is Remote Therapeutic Monitoring (RTM)?

Think of RTM as the "therapist on your shoulder."

While its cousin, Remote Patient Monitoring (RPM), focuses on vital signs (blood pressure, heart rate), RTM focuses on therapy data.

If you are treating a patient for a total knee replacement, you don't necessarily need to know their blood pressure every day. You need to know:

• Did they do their exercises?
  

• What is their pain level today (0-10)?
  

• What is their range of motion?
  

RTM allows you to bill for gathering and analyzing this data.

The Core Difference: RTM vs. RPM

For most rehab and specialty clinics, RTM is the superior fit because it aligns with the work you are already doing: managing recovery plans.

The 2026 Financial Landscape: Why Now?

Why is 2026 the year to jump in? Because the Centers for Medicare & Medicaid Services (CMS) just fixed the biggest hurdles to adoption.

1. New Codes for Shorter Episodes

Historically, RTM required 16 days of data collection per month. That was hard for short-term rehab cases. In 2026, New CPT Code 98985 allows billing for data collection of just 2-15 days. This opens the door for post-acute episodes that don't span a full month.

2. Lower Time Thresholds

Previously, you needed 20 minutes of management time to bill. The New CPT Code 98979 now reimburses for 10-19 minutes of management time. This recognizes that effective check-ins are often concise.

3. Payment Rate Increases

While other areas of healthcare face cuts, RTM management codes are seeing increases. The national average for 98980 (the primary management code) is set to rise by roughly 8.2% in 2026.

The Bottom Line: More patients qualify, shorter interactions are billable, and the reimbursement rates are climbing.

2026 RTM CPT Codes Cheat Sheet

To build a compliant revenue model, you need to master these codes. They fall into two buckets: Device/Setup and Treatment Management.

Bucket 1: Device & Setup (Technical)

These codes pay for the cost of the technology and setting the patient up.

• CPT 98975 (Initial Setup):

  
  

  • What it is: Education and setup of the device/equipment.

    
    

  • Frequency: Once per episode of care.
    

  • Value: ~$19 - $21
    

• CPT 98976 (Respiratory Device Supply):
  

  • What it is: Daily recording/transmission of respiratory system data.
    

  • Requirement: 16+ days of data in a 30-day period.
    

  • Value: ~$46 - $50
    

• CPT 98977 (MSK Device Supply):
  

  • What it is: Daily recording/transmission of musculoskeletal system data.
    

  • Requirement: 16+ days of data in a 30-day period.
    

  • Value: ~$46 - $50

    
    

• CPT 98985 (Short-Term Device Supply) NEW for 2026:
  

  • What it is: Device supply for shorter duration.
    

  • Requirement: 2-15 days of data in a 30-day period.

    
    

  • Value: (Varies by locality, est. $20-$30)
    

Bucket 2: Treatment Management (Professional)

These codes pay for your time spent reviewing data and talking to patients.

• CPT 98980 (First 20 Minutes):
  

  • What it is: First 20 mins of management services per month. Requires interactive communication.

    
    

  • Value: ~$50 - $54
    

• CPT 98981 (Additional 20 Minutes):
  

  • What it is: Each additional 20 mins per month.
    

  • Value: ~$39 - $42
    

• CPT 98979 (Short-Term Management) NEW for 2026:
  

  • What it is: 10-19 mins of management services.
    

  • Value: (Pro-rated below 98980)
    

The Math: How a Clinic Generates $150K+ Net Profit

Let's look at a realistic scenario for a mid-sized physical therapy or orthopedic clinic.

The Scenario:

• You engage 100 active patients per month in RTM.
  

• You use a software platform (SaMD) for patients to log exercises and pain.
  

• Your staff spends ~20 minutes/month reviewing dashboards and messaging patients.
  

Monthly Revenue Per Patient:

• Device Supply (98977): $50

  
  

• Management Time (98980): $50
  

• Total Revenue: $100 per patient / month
  

The Annual Breakdown:

• $100 x 100 patients x 12 months = $120,000 Gross Revenue

  
  

Scaling Up:If you scale this to 300 active patients (common for a multi-provider clinic), you are looking at $360,000 in new annual revenue.

Even after accounting for the cost of the software platform (typically $10-$20/patient), the margins remain exceptionally high—often exceeding 60-70% profit.

How to Implement RTM Without Breaking Your Staff

The 1 reason clinics fail at RTM isn't technology—it's workflow. If you ask busy therapists to "just log in whenever," it won't happen. You need a system.

Step 1: Automate Patient Identification

Don't rely on memory. Configure your EHR to flag eligible patients (e.g., Post-Op ACL, Chronic Lower Back Pain) automatically at intake.

Step 2: The "Digital Onboarding"

Use the 98975 code time wisely. Have a medical assistant (MA) or PT Aide spend 10 minutes helping the patient download the app and log their first data point while still in the clinic. If they leave without installing it, adoption drops by 50%.

Step 3: Exception-Based Management

Do not look at every patient every day. Use an RTM platform that offers "Exception Dashboards."

• Green: Patient adherent, low pain. (Ignore for now).
  

• Red: Patient missed 3 days of exercises OR reported pain > 6/10. (Intervene immediately).
  

This allows one staff member to monitor 100+ patients effectively.

Step 4: Batch Your Billing

Don't bill daily. RTM codes are billed once per 30-day period. Use your platform's reporting tools to generate a "Ready to Bill" list at the end of the month that verifies data counts (16 days vs. 2-15 days) and time logs.

Choosing the Right RTM Platform

Not all software is billable. To bill CPT 98977, the software must be defined as a medical device by the FDA (often Class I SaMD).

Checklist for Vendors:

1. FDA Status: Is your software considered a medical device for billing purposes?
   

2. EHR Integration: Does data flow back into my EMR (Epic, Athena, WebPT)?
   

3. Audit Trail: Does it automatically log the time I spend reviewing the dashboard? (Crucial for audits).
   

4. Patient Interface: Is the app easy enough for a 70-year-old to use?
   

Conclusion: The Opportunity Cost of Doing Nothing

In 2026, RTM is no longer "experimental." It is a validated, reimbursed standard of care.

Clinics that adopt RTM are seeing:

• Higher Patient Retention: Constant touchpoints prevent drop-offs.
  

• Better Outcomes: Early detection of complications leads to faster recovery.
  

• New Revenue: Six-figure profit centers that don't require more physical space.

The question isn't "Should we do RTM?" The question is, "How much revenue are we leaving on the table every month we wait?"