Round of Golf Makes for Rebates for Doctors
By Jane Han
Staff Reporter
Nine Bridges, Gapyeong Benest and Seowon Valley are the top three golf courses that Kim, a 40-something internal medicine physician, likes best. And his friends working at some of the country's most powerful drug companies know this well.
In fact, they make sure that Kim goes for a round at either of the courses at least once a month. For free.
The treat is just a part of the generous freebies he's used to taking, now pretty naturally.
``The tradition that goes back forever sort of numbs the sense of guilt,'' said Kim, who practices at a mid-sized university-affiliated hospital.
Frankly, he said, some doctors even expect remuneration right off the bat. That's because medical professionals know they do their part in return for the gifts.
For example, Kim, who treats dozens of high blood pressure patients daily, would be more inclined to prescribe certain drugs over others and encourage his junior physicians to do the same.
This is the basic give-and-take cycle of the industry's infamous rebate system. It has repeatedly proved its efficacy and benefited both parties ― hospitals and drug companies ― but the nation's biggest group of pharmaceutical firms moved to put a stop to this time old tradition Wednesday.
The Korea Pharmaceutical Manufactures Association (KPMA) slapped a 5-million-won fine on Ahn-Gook Pharmaceutical, a mid-sized firm, for taking dozens of doctors golfing on Jeju Island last month.
The interest group with more than 200 member firms claimed that it is making efforts to voluntarily clamp down on its members before the government gets involved, even if it means punishing the very company that the KPMA chairman is heading.
Uh Joon-sun, CEO of Ahn-Gook, has served as chairman of KPMA since early this year.
``We're trying to send a message that we're serious about doing fair business,'' said Chung Chul-won, a KPMA spokesman, who added that the group's ethics committee is going to continue keeping a close eye on member companies' unethical business practices.
The KPMA's decision to self-regulate comes at a time when the Fair Trade Commission is finalizing the results of its third round of investigation into the drug industry's illicit rebates and kickbacks.
The antitrust regulator probed 10 pharmaceutical firms in 2008 and seven in January, as part of its multi-phased industry-wide clampdown, which fined major makers such as Yuhan Corporation, Dong-A Pharmaceutical and Hanmi Pharm.
It plans to expand the scope of the investigation by making doctors and hospitals, who are guilty of taking bribes, subject to punishment as well.