Recently, interest in the current state of the domestic telemedicine industry has surged following the suspension of non-face-to-face prescriptions for the obesity treatment drug 'Wegovy.' On December 2nd, the government completely halted non-face-to-face prescriptions for obesity treatments classified as prescription drugs, including Wegovy. This measure was taken in response to controversies over indiscriminate prescriptions through telemedicine platforms that arose shortly after the drug's domestic launch in mid-October. According to the medical community, some telemedicine platforms issued prescriptions without even verifying basic weight and height, with criticisms even labeling it as a '10-second prescription.'
Telemedicine in South Korea began as a pilot project under the name 'remote medical care' in 1988. Since the 1990s, with the advancement of wireless communication technology, telemedicine has been introduced worldwide, with countries like the United States, Japan, and Australia institutionalizing it between the late 1990s and early 2000s. In contrast, South Korea has remained at the pilot project stage for over 30 years due to strong opposition from the medical community.
The COVID-19 pandemic became a turning point for telemedicine. In early 2020, as hospital visits were restricted due to the spread of the infectious disease, the government temporarily allowed telephone consultations and prescriptions. During this period, telemedicine platforms, which were small startups, experienced rapid growth.
Currently, the domestic telemedicine market operates through platforms such as 'Doctor Now' and 'Goodoc,' which connect medical institutions and patients. The scope of medical services permitted under the pilot project is limited to pediatric and adolescent diseases, nail fungus, acne, hair loss, and similar conditions. Platforms often mistaken for telemedicine services, such as 'Gangnam Unni,' 'Babytalk,' and 'Ddokdok,' actually focus on providing medical information and reservation services. Notably, 'Ddokdok' has established itself as an essential pediatric appointment app and has successfully transitioned to a paid service.
Contrary to common perception, telemedicine has not become widespread enough to replace face-to-face consultations even in advanced countries overseas. Until before COVID-19, the proportion of telemedicine in health insurance claims was minimal in various countries. This is due to the inherent characteristic of medical services called 'inseparability.' From a service marketing perspective, medical services require the provider (doctor) and consumer (patient) to meet at the same time and place to deliver and receive services.
Especially since medical service consumers are patients with health issues rather than general consumers, transitioning to telemedicine is structurally more challenging than other IT-based services. Patients tend to prefer face-to-face consultations when they are ill, a psychological trait observed not only in Korea but also globally.
The government has announced plans to institutionalize telemedicine through amendments to the Medical Service Act in the 22nd National Assembly. Opposition from the medical community has somewhat eased following the COVID-19 experience. However, the growth of the telemedicine industry is expected to be gradual, focusing on niche markets rather than rapid expansion like gaming or online shopping. The need for telemedicine is particularly prominent in pediatric and adolescent care. Due to the nature of pediatric diseases that can occur 24/7, the decrease in private pediatric clinics, and the necessity of guardian accompaniment, demand for telemedicine is high. Additionally, chronic and less urgent conditions such as acne and hair loss are expected to become major areas for telemedicine.
South Korea ranks third globally in the number of doctors per unit area, following the Netherlands and Israel, indicating high medical accessibility. In urban areas, clinics are so accessible that they are located in almost every commercial building. In such an environment, the need for telemedicine may be relatively lower compared to countries with vast territories like the United States, Canada, and Australia. Consequently, domestic telemedicine companies are actively seeking to enter overseas markets.
For the institutionalization of telemedicine, addressing the financial burden on health insurance is also a challenge. Increases in medical fees due to the introduction of remote medical equipment and longer consultation times could strain health insurance finances. Currently, South Korea's medical fees operate at a deficit, and the health insurance fund's capacity is limited. Additional costs from telemedicine include purchasing remote medical devices, increased consultation times, and system operation expenses. These costs could lead to an expansion of health insurance coverage items, resulting in higher insurance premiums and increased out-of-pocket expenses. Therefore, social consensus on fee setting and funding for telemedicine must precede its implementation.
Editor's Note
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