<1> Major Problems in Korea's Healthcare System
l As of 2010, 81,681 healthcare institutions existed, a 32.2% increase since 2000. Over the past decade, competitions for patients intensified with the increased capacity and the expensive medical instruments used in large hospitals.
l Public hospitals account for 5.6% of total healthcare institutions and for 10.4% of total sick-beds. i.e., approximately 90% of the sick-beds are in private hospitals (the OECD average of public sick-beds is 75%).
l All Koreans have national health insurance; however, it only covers 62% of total medical costs. The remaining 38% and other non-covered medical expenses, including optional treatment cost and nursing service fee must be paid by the patient.
l Besides national health insurance, 78% of all households are signed up for 3.6 private insurance plans at average
l The hospital workforce falls short of the number needed. The number of nurses is only one third of the OECD average.
l Due to working shifts and workforce shortages, only 100,000 nurses work at medical institutions (Korea has 270,000 licensed nurses).
l The number of CTs, MRIs, PETs and other high-priced medical equipment ranks lower than the OECD average.
Profit-making is prohibited even in private hospitals. For-profit hospitals were illegal, but now they are allowed within the limits of the Free Economic Zone.
<2>
Healthcare Privatization Policy: Content and Problems
l
Park Geun-hye's conservative administration
announced the Service Industry Investment Promotion Plan on December 2013.
l
The plan aims to relieve the government’s
responsibility and propel healthcare privatization by repealing various
regulations, which restrict profit-making businesses and commercial services,
with the purpose of creating a new single industry of healthcare sectors.
l
The policy does not promote public well-being
but creates more wealth for the conglomerates and chaebols (family-run, mostly nepotistic, large enterprise groups).
<3> KHMU’s Campaign Directions and Plans
l KHMU views recent governmental policies as steps to
privatize and commercialize healthcare sectors.
l The policies make health and life profit-making
tools; polarize healthcare services; and increase medical bills.
l Healthcare privatization, in particular, has been
opposed by over 70% of Koreans.
l Taken together, KHMU condemns and protests the
privatization of healthcare sectors, reflecting the Korean people’s will.
l On February 25, President Yu Ji-hyun of KHMU and 16
leaders shaved their heads and committed to an all-out struggle.
l Over the past month (throughout April), KHMU held
one-day education sessions about healthcare privatization and its impacts for
unionists.
l In solidarity with the Korean Nurses Association
(KNA), the Korean Dental Association (KDA), and the Association of Korean Medicine
(AKM), KHMU organized and ran anti-privatization campaigns.
l The
Pan-Nation Campaign Center
against Healthcare Privatization was co-organized by KHMU and approximately
ninety civic organizations. This center has been running a One Million
Signature Campaign against healthcare privatization.
l A
civil committee against
healthcare privatization were formed in regions and cities. The committees have
led discussion sessions, press conferences, street protests, signature
campaigns, and other activities.
l KHMU has conducted research and surveys of
healthcare privatization at home and abroad; contributed commentaries to media
to shape public opinions against privatization.
l KHMU
plans to propose a draft for an amended act against healthcare privatization,
along with national assembly members of opposition parties.
l KHMU plans to support candidates who oppose
healthcare privatization during the June 4 municipality and city council
election campaigns.
l KHMU
plans a general strike in June to prevent pro-privatization legislations from
being passed.
<4> Major Issues
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1.Authorizing Telemedicine |
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Major Issues |
Ø Telemedicine: treatment and diagnosis of a patient by a medical
professional via telecommunication technology (e.g., video chat) Ø The administration has submitted the revised bill which extends the
scope of telemedicine. Currently telemedicine may only legally occur between
healthcare professionals, but the new bill includes doctor-patient
treatments. Ø The administration explained the move as a means of providing better
medical services to military personnel, prison inmates, the disabled elderly,
the disabled, and people living in remote regions. |
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Reasons behind Opposition |
Ø Some misdiagnosis may happen since accurate diagnosis is difficult
(most doctors oppose it on these grounds). Ø Telemedicine is unnecessary for such a small country as Korea. . Ø The policy only benefits the telecommunications industry, medical
equipment companies, and certain chaebols
that view healthcare as a profit-making business. Ø Patients prefer large and modernized urban hospitals. If telemedicine
is introduced, most small-medium sized hospitals in small cities outside the
capital area will die off. Ø Telemedicine will lead to a reduction in and restructuring of the
healthcare workforce. ※ The KHMU opposes telemedicine and demands the introduction of the family
physician and expansion of public hospitals. |
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2.Authorizing the Establishment of
Subsidiary Companies by Medical Corporations |
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Major Issues |
Ø In Korea, profit-making services and establishment of for-profit
hospitals are banned on principle (exception: Free Economic Zone). Ø Commercial law would sanction the establishment of subsidiary companies
by medical corporations. Ø Subsidiary companies under medical corporations will be able to issue
bonds and stocks, thereby attracting foreign capital, and pay dividends. |
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Reasons behind Opposition |
Ø For-profit subsidiary companies aim to profit off of patients who use
the services of medical corporations. Ø This effectively authorizes the establishment of for-profit
hospitals. Ø If profit-making services intensify, with public hospitals accounting
for only 10% of the total, healthcare costs will increase and the system will
collapse. Ø The policy treats the hospital as a means of profit-making over patient
care and treatment. Ø The KHMU opposes the legal establishment of for-profit subsidiary
companies. |
|
3. Expanding the Range
of for-profit Side Businesses |
|
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Major Issues |
Ø The Medical Law
stipulates that medical and healthcare organizations, including hospitals,
are prohibited from pursuing profit-making businesses; Ø for-profit businesses
in medicine are restricted to eight services and their facilities: education,
and research; certain types of the
elderly care services and facilities;
postnatal care centers; funeral halls; parking lots on the premises;
restaurants; banks; and eyewear shops. Ø The government
announced its revised bill to expand the range of for-profit side businesses
to a greater extent; Ø i.e., the policy
permits the purchase and rent of medical equipment; the rent of medical
institutions and facilities, sales of cosmetics and health supplements,
spa/hot springs, sports facilities, etc. |
|
Reasons behind Opposition |
Ø Medical and
healthcare organizations are expected to greatly expand their for-profit
services, violating the rationale behind the Medical Law. Ø If the range of
for-profit businesses allowed is widened, medical organizations will offer
more for-profit services to patients and medical bills will increase overall.
Ø KHMU protests
for-profit businesses by medical organizations: for-profit services should be
prohibited, and side businesses should be confined to the eight areas
sanctioned under current law. Ø KHMU plans to propose a draft of amended medical act to the National Assembly, which forbids
for-profit side businesses. |
|
4. Authorizing Corporate
Pharmacies |
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Major Issues |
Ø The current medical law only permits licensed pharmacists to run
pharmacies; the revised bill authorizes corporate pharmacies |
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Reasons behind Opposition |
Ø Once a corporate body
has been established, large corporate pharmacies and franchisees will likely
replace small-medium and local community pharmacies. Therefore,
mega-pharmacies will increase medication prices and overall medical charges. |
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5.
Authorizing Mergers and Acquisitions among Medical Organizations |
|
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Major Issues |
Ø The current law prohibits M&A among
corporate bodies of medical organizations; the revised bill authorizes
it. |
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Reasons behind Opposition |
Ø With M&As, chaebol hospitals will appear, with
nationwide hospitals as subsidiaries. Ø The working environment will deteriorate under the
constant threat of restructuring. Ø Local community
hospitals will close; the primary healthcare system will collapse; and
medical charges will surge. |
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6. Permitting
Advertisements to Attract Foreign Patients |
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Major Issues |
Ø Marketing/advertisements
for medical services have been regulated in Korea to avoid possible adverse
effects; the revised law broadens the foreign language advertisements to
attract more foreign patients. |
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Reasons behind Opposition |
Ø Any marketing
materials, including foreign language ads, will affect decisions that local
patients make. Ø Excessive advertisements will increase the cost
that patients bear because of hospitals’ increased marketing expenses and
unnecessary surgical operations that hospitals will recommend to offset the
costs of ads. |
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