By Kim Tae-jong
Health Minister designate Lim Chae-min, a veteran economic bureaucrat, has reiterated the government’s commitment to attracting for-profit hospitals in free economic zones and Jeju Island.
His remarks made at a nomination hearing at the National Assembly are sparking a fresh round of debates over the pros and cons of for-profit hospitals.
Lim worked at the Ministry of Strategy and Finance for a long time, which has taken a supportive stance on the introduction of for-profit hospitals. The designation of Lim as the head of the health ministry raises speculation that he will more aggressively expand the plan to areas other than the currently designated ones.
Asked about the government’s position at the Assembly, Lim reaffirmed that the administration will allow for-profit hospitals only in such designated areas as free economic zones and the Jeju Special Self-Governing Province.
“Even if foreign-invested (for-profit) hospitals accept Korean patients, it won’t have any substantial impact on the overall medical industry as they will operate in restricted areas,” Lim said.
His remarks came several days after the government’s decision to allow foreign medical staff to work at hospitals owned by overseas entities in free economic zones.
On Aug. 22, the Ministry of Health and Welfare revised the rules on recognizing foreign medical licenses to allow foreign doctors, dentists and nurses to work at facilities in the Incheon Free Economic Zone.
Many civic groups are expressing concerns about the plan, claiming that the easing of the rules on foreign medical staff is a preparatory move to allow the nationwide establishment of for-profit hospitals.
“The government has pushed forward its plan to allow for-profit hospitals to open by introducing a series of deregulatory measures,” said Baek Young-hwan, an official from the Korea Security Insurance Union (KSIU). “In the end, it will privatize health care, which will be a huge burden for citizens.”
Permitting foreign-owned hospitals to do business in the country’s seven free economic zones will be the starting point for a broader range of changes in the healthcare sector, he said.
“By naming a key figure from the finance ministry as the head of the health ministry, the government is obviously trying to push forward its plan,” Baek said.
Other civic groups such as the People’s Solidarity for Participatory Democracy and the Korea Health and Medical Workers’ Union have also expressed their opposition to Lim as the new health minister for similar reasons.
Mindful of mounting criticism and suspicion, the ministry held a news conference Wednesday to reaffirm that the government is maintaining a cautious stance on the allowance of for-profit hospitals nationwide.
“We have simply specified the existing regulations and conditions as investors said relevant rules were too vague,” said Park In-seok, an official from the ministry. “It has nothing to do with the allowance of for-profit hospitals outside FEZs, and we are still very cautious on that matter.”
The establishment of for-profit hospitals has been allowed in FEZs since 2003 after a related law went into effect, but no foreign investors have shown any serious interest.
Proponents have argued that allowing such hospitals is the key to boosting medical tourism and to attracting outside investment in order to make local facilities more competitive.
Under the current law, hospitals are non-profit entities and banned from seeking investment. They must follow guidelines set by the health authorities on their operations including charging patients.
But opponents claim that if for-profit hospitals open and health care is privatized, medical bills will go up.