90% Plunge in Non-Face-to-Face Medical Services... Companies Either 'Seek New Opportunities or Shut Down'

Two months after the grace period for the telemedicine pilot project ended, it has been revealed that the project is effectively declining. Companies providing telemedicine services are either venturing into new businesses or shutting down their operations altogether.

According to the Remote Medical Industry Council (RMIC) on the 26th, as of September, the average daily number of telemedicine requests on platforms operated by member companies was only about 300 cases. Of these, only 15% (around 40 cases) actually led to medical consultations, and the number of cases where prescriptions were issued and delivered after completing telemedicine was fewer than 10 per day on each platform. RMIC explained that the number of telemedicine requests this month has not significantly changed compared to last month. In effect, telemedicine services are in a 'business suspension' state. RMIC has four companies providing telemedicine services as members.

This is because telemedicine for first-time patients was restricted after the grace period of the telemedicine pilot project ended. Telemedicine, which was temporarily allowed due to the COVID-19 pandemic, was reorganized from September when the pilot project began to focus on follow-up visits rather than first-time visits. Only in exceptional cases, such as residents of remote islands or elderly and disabled people with mobility difficulties, is telemedicine for first-time visits allowed. However, to prevent confusion in medical settings, a grace period was set from June, three months before the pilot project started.

The number of telemedicine requests sharply decreased after the grace period ended. According to RMIC, during the grace period, the average daily telemedicine requests on platforms operated by member companies were 4,100 in June, 3,600 in July, and 3,500 in August. After the grace period ended and first-time visits were officially restricted from September, the number of telemedicine requests plummeted to about 300, which is one-tenth of the requests in August. Of these, only about 40 cases led to actual consultations, as some first-time patients unaware of the restriction applied for telemedicine. Considering this, the actual decline is even greater. An RMIC official stated, "Since the grace period of the telemedicine pilot project ended, users have practically stopped using the platforms."

Digital healthcare companies that provided telemedicine services are rushing to discover new revenue streams. DoctorNow is promoting new services such as personalized supplement subscriptions and real-time doctor consultations. The supplement subscription service offers customized supplements designed by doctors based on individual health conditions, and they plan to launch the subscription service by developing exclusive supplements in partnership with hy (formerly Korea Yakult). They also prominently feature their previously offered real-time doctor consultations and hospital reservation services. Similarly, the telemedicine platform Dokdok has shifted its business model to a paid subscription hospital reception and reservation platform.

Some companies are seeking new opportunities overseas. LifeSemantics, which operates the telemedicine platform DoctorCall, is in the process of launching telemedicine services in Thailand. To this end, they signed a memorandum of understanding (MOU) with a local hospital in Thailand in March and are collaborating, with plans to launch telemedicine services in Thailand as early as November. A LifeSemantics representative explained, "Due to limitations in domestic telemedicine regulations and environment, we sought opportunities abroad. In addition to Thailand having relatively few telemedicine regulations, there is growing local interest in Korean telemedicine services, which led us to decide on this expansion."

Ildong Pharmaceutical's non-face-to-face medical platform Hudadak Care terminated its non-face-to-face medical service on the 23rd. [Image source=Hudadak Care application capture]

Some services are shutting down as they fail to overcome the decline in users. Hudadak Care, operated by Ildong Pharmaceutical, stopped telemedicine services entirely from the 23rd due to a decrease in telemedicine cases. Prior to Hudadak Care, platforms such as Namanui Doctor, Padak, and Maedup also ended their telemedicine services. According to RMIC, as of last month, nearly half of the 31 telemedicine services surveyed?14 in total?have ceased operations.

The trend of 'exiting telemedicine' in the telemedicine industry is expected to continue for the time being. This is because the medical community and political circles view telemedicine unfavorably, making it difficult to expect the allowance of first-time visits. At the National Assembly Health and Welfare Committee’s audit held on the 12th, representatives from telemedicine platform companies appeared as witnesses and reference persons, facing criticism regarding the teleprescription of high-risk drugs such as narcotics and the possibility of prescription forgery. The Ministry of Health and Welfare is currently working to legalize telemedicine, which is being conducted as a pilot project, through amendments to the Medical Service Act.

This content was produced with the assistance of AI translation services.