By Kim Tae-jong
The prosecution indicted 11 doctors, pharmacists and hospital officials Wednesday on charges of receiving what are widely known as "rebates" here from drug makers in return for prescribing, purchasing or recommending their products.
The indictment was the first of its kind since the introduction of legislation to punish rebate-takers and providers last November, as part of efforts to make medicine dealing more transparent and to reduce prices.
“This is meaningful because it is the first time rebate-takers have been indicted since the implementation of the measure,” said Kim Gook-il, an official from the Ministry of Health and Welfare. “In the beginning, people were skeptical over the possibility of rebate-takers being really punished, but now the indictment indicates that the authorities are taking a stern stance over the illegal practice.”
Among those indicted were a 56-year-old CEO of a drug distribution company named Cho; a 37-year-old doctor, Kim, who heads a hospital; and a 57-year-old doctor, Cho, who is a director on the board of a medical corporation.
According to prosecutors, the medical sales company CEO offered kickbacks worth 900 million won to seven hospitals, and separately provided 280 million won to mid-sized hospitals and clinics.
The two doctors, Kim and Cho, were found to have each received 200 million won and 150 million won, respectively, in kickbacks.
The prosecution also indicted six other doctors, pharmacists and hospital officials without physical detention, who allegedly received kickbacks ranging from 3.5 million won to 70 million won.
As the authorities are strengthening the crackdown on such practices, a drug firm conducted a mock survey and offered some 200 doctors rebates under the name of a “survey fee,” investigators said. They all have had their license suspended for two months.
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