By Lee Hyo-sik
The government will ease rules in the nation’s free economic zones (FEZs) to allow foreign medical institutes to more easily set up and operate for-profit hospitals in them.
Allowed in FEZs since 2003, no foreign investors have shown any serious interest due to various legal hurdles.
Many progressive civic groups strongly oppose the move, arguing that relaxing regulations are preparatory steps towards the full-scale, nationwide establishment of for-profit hospitals.
Despite the underlying disapproval from the groups, the Ministry of Knowledge Economy said Wednesday that the ordinance governing the country’s six free economic zones will be amended by the end of the year to welcome foreign hospitals to establish and manage medical facilities here.
Under the revision, the ministry will permit foreign medical institutes to manage for-profit hospitals in FEZs and hire a certain number of doctors with licenses acquired overseas. Rules on recognizing foreign medical licenses will also change to accept more foreign doctors, dentists and nurses.
``After holding a series of discussions with our counterparts from the Ministry of Health and Welfare, and the Ministry of Strategy and Finance, we will change and clarify an ordinance of the Free Economic Zone Law to promote for-profit hospitals,’’ a ministry official said.
“We will complete the revision of the ordinance and soon begin contacting renowned multinational hospital operators,’’ he said.
The government’s move comes as two bills associated with the establishment of for-profit hospitals in FEZs are pending at the National Assembly for passage.
An official from Incheon FEZ said Thursday that they will start work to construct the Incheon Songdo International Hospital later this year.
“The revision of related ordinance is the minimal legal condition for the construction of the international, for-profit hospital. To build internationally-competitive for-profit hospitals, we need more solid legal ground; therefore, the bills pending at the National Assembly must be approved at the earliest possible time,” an Incheon FEZ official said.
Claiming that permitting foreign-owned hospitals to do business in FEZs will be a starting point for more drastic changes in the nation’s healthcare sector many progressive civic organizations are strongly against the plan,.
``Currently, lawmakers are debating the pros and cons of the introduction of for-profit hospitals. Regardless of this, the government unilaterally is making it easier for such institutions to be set up in FEZs. This is a flagrant disregard of public opinion,’’ said Woo Suk-kyun, policy director at the Korean Federation of Medical Groups for Health Rights.
Woo said the majority of Korean citizens oppose the establishment of for-profit hospitals, stressing it will compromise the nation’s healthcare system and increase medical costs.
``For-profit hospitals will only benefit the 1 percent super-rich Koreans, while leaving the remaining 99-percent on the sidelines. Many studies show that if such medical facilities are allowed, the overall healthcare costs will go up by at least 1 trillion won. Additional upward pressure will weigh down on consumer prices and worsen the livelihoods of middle-and low-income families,’’ the director 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 the planned revision to encourage foreigners to build and operate hospitals here.
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.
Proponents of for-profit hospitals claim that allowing such hospitals is the key to boosting medical tourism and to attracting outside investment in order to make local facilities more competitive.