As telemedicine becomes more common in outpatient care, providers are faced with the challenge of integrating virtual services with traditional in-person services. While telemedicine offers convenience by reducing waiting and travel costs for patients, it may also require follow-up in-person visits, which could negate the initial benefits. This study explores how providers can best balance virtual and in-person service delivery and suggests interventions to enhance virtual service effectiveness and reduce the need for follow-up visits. Using a queueing-game model, we analyze how a provider serving a heterogenous patient population can strategically allocate capacity between virtual and face-to-face channels in a capacity-constrained healthcare environment. Our findings show that the optimal allocation of capacity depends on patients' tolerance for waiting in the face-to-face channel and the workload generated by the virtual channel. Patients with lower waiting tolerance tend to prefer virtual services, but if the virtual channel creates significant workload per patient, it may be more efficient to focus exclusively on face-to-face visits. Despite the increasing popularity of telemedicine, not all providers may benefit from offering virtual services. Effective use of telemedicine in outpatient care requires careful coordination of capacity between virtual and in-person channels, as well as customization of telemedicine approaches based on the provider's operational context and patient population characteristics.