The United States faces a shortage of 86,000 physicians over the next 10 years, according to the American Association of Medical Colleges. Telehealth (digital communication technologies such as video conferencing, telephone consultations, or remote monitoring devices) can alleviate the shortage by enabling physicians to serve out-of-state patients. However, state medical licensing laws frequently inhibit this practice. This research in brief presents research about the effects of universal licensure recognition laws (which free physicians from having to obtain a license from each new state in which they want to practice).

Key Findings:

• Universal recognition increases labor market efficiency among licensed individuals by increasing labor force participation and increasing in-migration.
• Universal recognition improves patient access to physicians, especially for older patients, mainly due to more physicians’ providing out-of-state and telemedicine services.

Policy Implications:

• States interested in reducing administrative burdens, bolstering the physician workforce, and ensuring that patients can access care should pursue policy reforms such as the Telemedicine Freedom Act, model legislation for interstate telehealth licensing recognition.
• Alternative reforms such as licensure compacts are less effective than universal recognition for achieving these goals because they add bureaucracy, intrude on state sovereignty, require a critical mass of states to take effect, and cover only one occupation at a time.

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