(Yicai Global) Sept. 10 -- Chinese health community platform Haodf.Com, operated by Hudongfeng Technology, has accused rival physiological counseling service provider Zhaoyang Doctor of drug kickback, tax evasion, and unfair competition.

Haodf.Com published an allegation letter on Weibo on Sept. 8 to accuse the platform operated by Guangzhou Xinqing Information Technology of a series of illegal activities, after one of its doctors received an invitation from a person surnamed Zhou, who is supposedly working for Zhaoyang Doctor.

The invitation was offering the doctor a 5 percent to 20 percent cut of the innovator drugs expenses as commission in the form of tax-free “consulting fee,” the Beijing-based firm added in the letter. Zhou also claimed Haodf.Com’s medicines are 10 percent to 15 percent more expensive than the same products on the rival platform, noting that Zhaoyang Doctor also has a wider range of drugs.

"It is up to doctors to decide what platform they would like to practice services for, and Haodf.Com has never stopped doctors from working on multiple platforms," the company told Yicai Global. "We also welcome competition because it keeps us working hard and constantly pushes us to do better."

Haodf.com said it has submitted a complaint including real names to the market regulator, health authority, and tax bureau in Guangzhou’s Liwan district, where Guangzhou Xinqing Information Technology is based. The materials are now under scrutiny, Haodf.Com said to Yicai Global.

The allegation letter shed light on issues related to online health platforms’ profit model and doctor’s compensation. Haodf.Com denied the accusation aims to attract more doctors.

Founded in 2006, Haodf.Com has 790,000 registered doctors who answer patients’ questions on the platform, both for free and paid. Despite raising money from renowned companies such as Tencent Holdings and Xiaomi, it is at loss since its establishment, as most of its revenues come from drug sales.

Online healthcare platforms should separate clinical treatments from drug sales, as Chinese medical institutions do, Haodf.Com noted on Weibo. Making money on drugs would push institutions to ask doctors to increase the prescription amount, and thus shift their focus from ensuring rational drug use.

Editors: Zhang Yushuo, Futura Costaglione