That's ridiculous. You're right that not everyone can afford a webcam! She should NOT demand or even expect you to buy things you can't afford.

Maybe I'm just a cynic, but I have a hard time believing that she "might not get paid" for telephone only appointments. You're utilizing her services, whether you see her in person, talk on the phone, or use video chat. Even if it were true, she could argue that the current "situation" leaves her with no choice, and then she can fight it herself. She needs to vouch for herself instead of making HER problem YOUR problem.

Also, I do not believe for one minute that using the telephone puts her at risk for getting sued for "medical malpractice." Your pdoc DOES take emergency/urgent calls, right? Or at least she lets you leave voicemails? Whenever you call her or leave a voicemail, you're giving her your medical information. So why, all of a sudden, is talking over the phone considered "medical malpractice"?

In general though... I know that my therapy office has a rule about this sort of stuff: if you're not seeing your pdoc in person anymore but you need an Rx, you will pay your copay (defined by your insurance) because you're utilizing the pdoc's services. Doesn't matter if you're doing it on the phone, video chat, or whatever. It's always been like this since I started 5 years ago.

As for setups go... You could try your phone. I know you say it's old, but... what kind of phone do you have? Maybe I can help?