Feasibility of Introducing Investor-Owned Hospitals in Korea

• Main Author: Seo, HongSeok
• Format: Text
• Language: English
• Published: Scholar Commons 2017
• Subjects: Feasibility; Investor; Owned; Hospitals; Korea; Health Services Policy and Management; Health Policy; Public Affairs; Public Policy and Public Administration; Greenland
• Online Access: https://scholarcommons.sc.edu/etd/4413; https://scholarcommons.sc.edu/context/etd/article/5449/viewcontent/Seo_sc_0202A_15420.pdf

Since 2002, there has been active debate regarding the introduction of for-profit hospitals in South Korea: the advocates highlight the multiplication of economic value after the introduction of for-profit hospitals, whereas the opponents voice their concern about the possible negative consequences for-profit entities can create within the health care system. Various stakeholders including doctors’ associations, hospital associations, and civic groups have been for or against the introduction of for-profit hospitals, according to their interests. The government has tried to develop the national health and medicine system based on the positive and negative impacts of their introduction. In December, 2015, the government gave permission to establish Greenland International Hospital, the nation’s first for-profit hospital, on Jeju Island. This suggests that the government has decided that private for-profit hospitals will do more good than harm mainly because of the presence of private hospitals in the market on improved quality of medical services, development of medical industry, and creation of jobs rather than emphasizing the negative effects like rising medical expenditures and weakened access to medical services for low income populations. In South Korea, the medical system has largely developed around the private sector which are sanctioned as not-for profit hospitals. There are many different types of governmental regulations in place which assumes that medical care is not a market commodity and medical service providers are not supposed to be for-profit entities. This view has affected the development of the health sector in Korea and facilities tend to register themselves as not-for-profit because of regulatory reasons. To prepare for the introduction of advanced foreign medical services, to increase the demand for advanced medical services, and to strengthen the competitiveness of the medical industry as a new industry sector, the Korean government has tried to introduce for-profit hospitals as a ...