Proposed System Flow (Summary)

✅ Proposed System Flow (Summary)

  1. Site name: Online University Hospital
  2. The site is operated by a non-physician company
  3. Over 50 physicians (who are employed elsewhere) register to the platform as part-time
  4. Patients are matched to online-available doctors for teleconsultation
  5. After the consultation, doctors issue referral letters and prescriptions, referring patients to external hospitals or pharmacies
  6. Prescriptions are dispensed by the referred hospital or pharmacy
  7. The referred hospital pays a referral fee to the physician who issued the referral
  8. The site operator claims to provide only the system (IT infrastructure) and is not involved in medical practice

❌ Legal Issues Identified (Significant Risk of Violation)

Medical Practitioners Act – Article 31

Prohibition of unauthorized brokering of medical services

  • Connecting patients with physicians for consultation and accepting referral-based compensation is classified as “illegal brokering of medical practice"
  • Referral fees paid to the doctor indicate commercial incentive, violating medical ethics and Japanese law

Medical Care Act – Article 6-5

Prohibition of misleading names

  • The term “University Hospital" is legally reserved for official university-affiliated hospitals
  • A private or non-medical entity using this name can be subject to governmental correction orders or penalties

Pharmaceutical and Medical Device Act – Article 68, 66

  • Inducing prescriptions or promoting medication through third-party referrals can be seen as illegal inducement or misleading advertising
  • Having one doctor refer the patient and another facility dispense medications creates a blurred responsibility and potential legal liability

Medical Responsibility and Safety

  • Since diagnosis and prescription are split between different institutions, it’s unclear who holds medical accountability for adverse events or misprescription
  • This lack of accountability is non-compliant with standard medical regulations

✅ Key Legal Violations Summarized

ActionLegal ViolationSummary
Non-doctor company introduces doctors to patientsMedical Practitioners Act Art.31Illegal brokering of medical services
Using “University Hospital” as site nameMedical Care Act Art.6-5Misleading representation
Doctors referring to external facilities for prescriptionMedical + Pharmaceutical LawsEncouraging non-compliant treatment
Referral fees paid to physiciansMedical ethics + ActFinancial incentive = high legal risk

✅ Solutions to Avoid Legal Violations

✔ Solution ①: Make the operating entity a medical corporation or licensed physician

  • This avoids illegal brokering and misrepresentation
  • Physicians must belong to or be under contract with the clinic that runs the site

✔ Solution ②: Eliminate all referral fee structures

  • Doctors must not receive compensation from other hospitals for patient referrals
  • If referrals are needed, they must be based solely on medical necessity, and no money should be exchanged

✔ Solution ③: Ensure that the same doctor who diagnoses also prescribes

  • Prescriptions must be written by the doctor who conducted the consultation
  • Use electronic prescriptions directly sent to the patient’s chosen pharmacy

✔ Solution ④: Change the site name to a neutral and compliant one

Examples:

  • Online Medical Center
  • e-Doctor Network
  • Digital Health Link

Avoid names like “University" or “Hospital" unless officially affiliated.


✅ Recommended Legal Structure (Compliant Model)

  1. Site operated officially by a licensed medical institution
  2. Physicians are formally contracted (part-time or freelance) with the clinic
  3. Consultations and prescriptions are performed by the same doctor
  4. Prescriptions are issued electronically and sent to the patient’s chosen pharmacy
  5. No referral fees are allowed
  6. Full compliance with the Online Medical Treatment Guidelines from Japan’s Ministry of Health, Labour and Welfare (MHLW)

✅ Summary Table

RiskIssueLegal Solution
Illegal brokeringNon-doctor matching doctors/patientsClinic must operate the site
Name misuse“University Hospital” misleading nameChange to neutral, lawful name
Split treatment responsibilityDoctor ≠ prescriberUnify consultation and prescription
Financial incentivesReferral fee to doctorsMust be fully prohibited

If needed, I can also create:

  • A visual flowchart of the legal online medical model
  • Sample documents such as:
     ・Physician agreement templates
     ・Online consultation terms of service
     ・MHLW inquiry draft for pre-approval

Let me know if you’d like any of these.