How South Carolina’s Social Work Compact is paving the way for Lexington telehealth entrepreneurs

Lexington County, SC 08/18/2025 - In Lexington, telehealth entrepreneurs are entering a new era of opportunity thanks to a significant shift in interstate licensing laws. The recent passage of the Social Work Interstate Compact Act has positioned South Carolina as a leader in digital behavioral health, allowing mental health professionals to practice across state lines more easily. 

If you're building or scaling a telehealth venture in this region, the implications are significant: wider reach, faster recruitment and streamlined compliance. South Carolina’s Department of Mental Health already delivers around 1,550 psychiatric telehealth services each month, a reflection of the state’s expanding infrastructure and demand for remote care. For startups aiming to solve access issues in underserved communities, this policy change is ultimately transformational.

Compact Licensing and the New Interstate Landscape

The Social Work Interstate Compact allows licensed social workers to apply for a multistate license valid across participating states. With at least seven states—South Carolina among them—having passed legislation to join, implementation is now underway. Once active, social workers can serve clients in other member states without securing additional licenses. If you’ve waited weeks for clinician credentialing, you know how impactful that is. The compact preserves state regulatory authority while eliminating redundant bureaucracy.

The ability to accept professionals with valid credentials in another compact state—and without requiring a separate South Carolina social work license—means your hiring pool expands overnight. You can build a team from Utah, Kentucky, Missouri or Kansas and launch care services statewide without wrestling with one-off licensing in each location. That flexibility makes your operation more nimble and client-focused.

Legislative Progress and South Carolina’s Commitment

In South Carolina, House Bills 3752 and 3633 were introduced during the 2024 legislative session, moving quickly through committee review and gaining bipartisan support. Both bills were passed in early 2025, signaling the state’s strong backing for innovation in mental health access. For telehealth providers in Lexington, this opens a new lane for growth. The compact doesn’t dilute state standards; rather, it aligns them with a common framework. You’ll still need to verify your staff’s qualifications and maintain quality standards, but you won’t face unnecessary delays due to geography.

Importantly, South Carolina remains in full control of its licensing board and disciplinary procedures. Any social worker practicing in the state under the compact remains accountable to local rules. That’s reassuring for healthcare founders who value regulatory clarity. You’re gaining access to out-of-state talent without compromising the protections South Carolina patients count on.

Lexington’s Infrastructure Favors Telehealth Growth

Lexington is particularly well-suited to take advantage of the compact’s benefits. The region has invested in strong broadband coverage and its healthcare ecosystem continues to change, particularly around mental and behavioral health. Local coworking spaces, small business accelerators and state-backed development grants give startups a favorable launchpad. If you’re starting out or scaling up, this mix of connectivity and community support makes it easier to focus on product, outreach and service design.

With the compact, hiring becomes far less restrictive. You can find top-tier clinical social workers in other compact states, offer competitive contracts and go live faster than before. Previously, launching in a new state required months of paperwork, state-specific exams and sometimes relocation. Now, with a multistate license, your company can operate in a broader market while remaining headquartered in Lexington. The agility that brings could be a decisive advantage in a crowded, fast-moving field.

Practical Considerations and Startup Strategy

Although the compact clears the biggest hurdle—interstate licensure—it doesn’t remove all operational requirements. If you're managing a telehealth company, you’ll still need to track continuing education credits, complete background checks and meet supervision guidelines for every provider you employ. The good news is that many of today’s healthtech platforms are updating to handle this complexity: automated systems can now flag license expirations, verify state eligibility and alert you to compliance updates.

That kind of automation matters. You want to spend time growing your patient base and fine-tuning your service offerings, not wading through administrative tasks. With more insurers embracing parity rules for telehealth reimbursement, billing also becomes more consistent. A well-structured multistate team allows you to offer flexible scheduling, niche specialties and culturally responsive care—essential components of modern mental health delivery.

What Comes Next for Lexington-Based Founders

Now that the compact is active in enough states to move forward, South Carolina entrepreneurs have a unique window of opportunity. Implementation will take place over the next 12 to 24 months, giving you time to prepare systems, update legal frameworks and build partnerships. Consider sourcing talent from compact member states that complement your team’s needs. If you need clinicians with trauma recovery expertise, for example, you can broaden your search far beyond South Carolina.

It’s also a great time to build relationships with training programs and MSW graduates across compact states. Many universities are integrating telehealth readiness into their social work curricula and compact licensure will let those graduates find work with you faster. Establishing partnerships now means you’ll be well-positioned as demand continues to rise. Over the next few years, you could operate a regional virtual care network—all from your office in Lexington, without compromising quality or compliance.

The Social Work Compact is more than a legislative update—it’s a blueprint for what scalable, equitable telehealth can look like. For Lexington’s growing group of mental health entrepreneurs, it removes longstanding roadblocks and creates the conditions for real impact. If you’re ready to build across state lines while staying rooted in South Carolina, this is your moment to act.