Healthtech Startup Good Doctor Explains Strategy for Entering the Corporate Line

Good Doctor Technology Indonesia announced that it has received series A funding worth $10 million or the equivalent of 156,6 billion Rupiah. This round is led  MDI Ventures with the involvement of previous investors, ie Grab. This investment injection will be used to expand Good Doctor's reach, including by increasing partnerships with more health institutions.

"With this strong support, we are ready to take the next step in improving and expanding health services in Indonesia. In addition to the curative initiatives we are currently undertaking, the company intends to implement health prevention and promotion measures that are in line with the priorities of the Ministry of Health," said Good Doctor CEO Danu Wicaksana.

Optimize the growth momentum of telemedicine

Based on McKinsey data compiled in Q3 2023, there are significant changes in the health care behavior of the Indonesian people, this is driven by trends that were formed during the Covid-19 pandemic. More than 70% of people intend to use telemedicine services, even though the pandemic has been declared over.

Looking at existing market conditions, the telemedicine service ecosystem is already starting to mature. Consumers are treated to a highly efficient way to connect with their desired doctor at any time. The product variety is also complete, including psychological assistance, nutritionists, and medical consultations that require specialist treatment.

On the other hand, telemedicine platforms are also starting to connect with the wider health ecosystem. For example, with pharmacies to make it easier for users to redeem medicines recommended by doctors.

The trend of demand for telemedicine which remains strong is also shared by players in the industry, including Good Doctor.

Danu said, “after the pandemic, we observed three important changes in Good Doctor user behavior. "Firstly, during the pandemic, people sought our services primarily for Covid-19 related issues, but now they are consulting us for various other ailments like fever, indigestion, ulcers, coughs and allergies."

Danu continued, "Secondly, during the pandemic, many consultations were carried out individually and self-funded, now we see many companies facilitating their employees to access Good Doctor service for free, with more than 55 insurance companies and more than 2500 corporations already partnering with us. Third, those who used Good Doctor services during the pandemic still rely on telemedicine even after the pandemic ends because they feel comfortable with the service and it has become part of their routine health services."

Good Doctor has now developed positively in the last year. They now have more than 15 million users and in particular the B2B business has grown rapidly partnering with more than 60 insurance companies and more than 2500 corporations/startups/various other organizations.

Deepen B2B features for corporate customers

Of the number of services available, Danu said that the one that is quite popular recently is vaccination. Good Doctor helps many individual and corporate customers in getting vaccines for dengue fever, flu, and so on.

A number of new features have also been developed to pamper corporate customers, such as:

• Plug-ins; Good Doctor integration into various applications from insurance companies in Indonesia.
• Co-payment; a feature that allows insurance partners to implement policies co-payment for benefits certain, for example 80% borne by the company and 20% borne by the employee.
• Electronic sick note; Company employees can get an official electronic sick note from a doctor at Good Doctor when they are sick and must report it to the company's HR directorate.

Good Doctor tries to present a strong value proposition with presenting the most complete health ecosystem with more than 4500 pharmacy networks, hospitals, labs, clinics; and instant drug delivery capabilities in more than 200 cities in Indonesia.

"Next year we plan to launch several new features and services [...] We plan to expand our business to a wider customer segmentation (for example more corporate and insurance partners; or other customer segments); add new features/services to improve customer commitment; "and also introducing preventive programs to help our company clients to better maintain the health condition of their employees so that future company health costs can be well maintained," added Danu.

Now it is an independent unit

When present in Indonesia in 2019 as a result joint-venture Ping An Good Doctor and Grab, Good Doctor services come together as telehealth integrated with super app Grab. Then in 2021 Good Doctor appeared as separate app with the hope of accelerating user growth and the features in it.

As stated in the funding release, Good Doctor is now completely independent with the highest portion of shares held by management, giving them more confidence to be able to move more agilely in innovation.

"Until now, management has a majority stake so it can move more independently and agile. "With the entry of MDI, this further strengthens Good Doctor's position, where the majority of company ownership is also owned by local Indonesian shareholders," explained Danu.

Regarding the entry of MDI, Danu also said that there would be many synergies being planned with the largest telecommunications conglomerate group in Indonesia. This collaboration will touch various companies under Telkom. It was even stated that there were a number of collaborations already underway, one of which was with Admedika as the largest TPA (Third Party Administrator) company in Indonesia.

"We are also a provider of outpatient digital health services for several Telkom Group companies, such as Telkom Access, Metra, Telkomsel, and several other [subsidiary] companies," added Danu.

MDI Ventures CEO Donald Wihardja said, "We recognize the progress that Good Doctor has achieved and the resilience of Good Doctor's business model in Indonesia, especially in the corporate segment. Their dedication to providing easily accessible and high-quality health services by utilizing technology has caught our attention. We see enormous growth potential in this effort.”

Next plan

Danu believes that sector healthtech In Indonesia the potential is very large, because Indonesia's population is large and the spread of its citizens across more than 13 thousand islands is a challenge in itself. The shortage of doctors, the uneven distribution of doctors and health workers, as well as the pressure of national health costs which continue to increase above the rate of inflation will be the basis for wider use/adoption of technology in the future.

"We at Good Doctor are ready to help the Indonesian government to provide quality and affordable health services for all Indonesian people without exception," said Danu.

Apart from that, it was also conveyed that in the future Good Doctor does not rule out the possibility of entering the segment Biotech, by seeing affordability and scalability-his. Danu and the team watched genomics, biotech etc. will be very useful for future preventive health programs.

"As stated by the Minister of Health, health costs will continue to rise and burden the APBN if the way we treat health is always only curative. So a preventive approach will be really needed, from the simplest first - regular diagnostics, a healthy lifestyle, and so on," concluded Danu.