25-04-2025
Employee at telehealth firm WhiteCoat suspected of falsifying genetic test reports for Vietnam client
[HANOI] Singapore digital healthcare provider WhiteCoat Global has acknowledged an 'isolated case' of employee misconduct, through which allegedly falsified genetic screening reports were sent to a corporate client in Vietnam.
Two sources said that 300 fraudulent test reports were issued to the client's employees, who used the services of WhiteCoat and its third-party vendor to detect hereditary genetic mutations that put them at higher risk of cancer.
The staff member who was handling the service package with the client engaged an unauthorised external service provider, without WhiteCoat's knowledge, to deliver these test results to the client.
WhiteCoat has, for the past year, been in a partnership with Gene Solutions, a Vietnam-headquartered biotech firm which uses gene sequencing and data analytics technologies.
The falsified test results bore the name of Gene Solutions, but were in fact generated by another party.
Felda Chay, head of investor relations and corporate communications at WhiteCoat, said in a statement: 'Errant personnel had orchestrated the engagement of an unauthorised party to provide certain services to a corporate client of WhiteCoat Vietnam.
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'We understand that there is no impact on the medical treatment and health of the individuals involved.'
The Business Times understands that the employee who was allegedly involved is no longer with the company.
The matter came to light after WhiteCoat received queries and feedback on the test results from the affected client. The digital healthcare provider then launched an internal investigation, gathered witness statements, and reported the matter to the Hanoi police.
A post on the portal of Ho Chi Minh City's department of health dated Apr 17 said the authorities had conducted a separate surprise inspection of the WhiteCoat clinic in the city after they were alerted to the allegedly falsified test results by Thanh Nien, a local newspaper.
The health agency has since submitted an official request to the city police to conduct further investigations.
Gene Solutions, in a letter to clients and partners before the health department's inspection, said that, based on information from 'a leading commercial bank', certain parties had deliberately falsified reports – using forged logos, signatures and seals – to falsely suggest that the test results came from Gene Solutions' authorised units.
The Vietnam-based biotech firm said in the letter seen by The Business Times: 'Gene Solutions confirms that WhiteCoat has not sent any medical samples for genetic tests related to screening for hereditary cancer risks.'
Bryan Koh, WhiteCoat's chief executive, founded the company in 2018. It was among the pioneer firms in the regulatory sandbox set up by Singapore's Ministry of Health for startups in telemedicine and mobile medicine. The firm is backed by investors that include SoftBank Vision Fund, Raffles Family Office and MDI Ventures.
With offices across Vietnam, Singapore, Indonesia and Malaysia, WhiteCoat offers healthcare solutions to corporate clients. Its digital platform connects its clients' employees with professionals for on-demand tele- and in-person health consultations, filling of prescriptions and wellness screenings across primary, specialist and allied care.
WhiteCoat began operations in Vietnam in 2022 and has since opened two branches, one each in Hanoi and Ho Chi Minh City.
A report on the website of Ho Chi Minh City's health department said WhiteCoat has signed contracts with 11 hospitals and clinics in Vietnam since 2024 to provide health consultation services for its clients.
The company said that since the incident came to light, it has taken steps to remedy the situation and to strengthen its internal controls to prevent a repeat of the incident.
Chay said: 'Immediately after the incident was uncovered, we proactively engaged and continue to actively work with the affected corporate client to resolve the issue.'
Last October, WhiteCoat announced its acquisition of telemedicine platform Good Doctor Indonesia for an undisclosed amount.
In what it called 'the biggest merger and acquisition involving two dominant telehealth companies in South-east Asia to date', WhiteCoat said the combined group would work with over 130 insurers and 7,500 corporate partners to service more than 6.8 million people.
By the time of the acquisition, over 1.5 million consultations and medication fulfilment services had been provided by WhiteCoat to its global customers.
Gene Solutions, one of Vietnam's biggest gene-testing firms, was founded by three Vietnamese scientists in 2017, and is backed by Vietnam-focused private equity firm Mekong Capital and Singapore private capital firm, August Global Partners.
The Vietnamese biotech company has a portfolio of more than 30 genetic-testing products in the fields of obstetrics, paediatrics and oncology.
Aiming to make early disease detection and precision medicine more accessible to people in the region, Gene Solutions has expanded its operations to Indonesia, Thailand, Singapore, Malaysia and the Philippines.
In an interview with BT last year, the Vietnamese firm said it planned to raise some US$70 million in a Series C funding, and undertake a share sale in the following two years.
