Debate on For-Profit Hospitals Delayed
By Na Jeong-ju
Staff Reporter
President Lee Myung-bak said Wednesday that it was too early to allow certain hospitals to draw private investment, although it was not a bad idea.
``We can introduce the profit-oriented hospitals, but it should be done after a social consensus is reached,'' Lee said during a weekly meeting with his senior secretaries at Cheong Wa Dae.
The remark indicates that he has put the brakes on the Ministry of Strategy and Finance's plan to introduce the system early next year in an effort to create jobs and improve the quality of medical services.
The move, however, was not welcomed by a majority of people as they fear it could hike medical bills and make health insurance more expensive, according to critics.
The finance ministry has been at odds with the Ministry of Health, Welfare and Family Affairs, which claims it is dangerous to meddle with an area that is closely related to public health care from an economic perspective.
``President Lee is not on the side of either ministry,'' said Lee Dong-kwan, senior secretary for public relations. ``The President has called for the need to take enough time to decide on introducing the for-profit hospitals because it is a very sensitive issue.''
The hospitals will adopt a shareholding system like private firms. Qualified hospitals can attract investment from the private sector and share profits.
The fresh funds will enable hospitals to improve facilities for treatment and ease financial problems in finding cures to diseases. Overall, it will help enhance health care services, attract more foreign patients and create numerous jobs, according to the finance ministry.
``We should deal with the issue from the perspective of enhancing health care for the people in general. I believe Finance Minister Yoon Jeung-hyun is looking at things from the view of creating more jobs,'' Health Minister Jeon Jae-hee said Tuesday during a meeting with a group of newspaper editors.
Currently, all public hospitals are classified as non-profit entities.