my timesThe Korea Times
  1. South Korea
  2. Others

More hospitals targeting insurance fraud

Listen
By Lee Kyung-min
  • Published Jan 22, 2013 3:44 pm KST
  • Updated Jan 22, 2013 3:44 pm KST

“Administrator’s hospital” is a hospital in the genuine sense of the term.

Systematic insurance fraud is cultivated here.

A Kim, with enough money, hired a financially struggling doctor.

He then becomes a de jure doctor.

Now that the doctor’s ready, all he needs is patients, most of whom are not really sick.

They are called “Nylon patients” because like the fabric, nylon, they are very stretchy.

They are ill for the money.

One minute, they are patients in front of insurance company investigators, and then the next, they are not.

Specific instructions are given to them. “Leave your cell phones at the hospital. Don’t make copies of official documents. Do not use your credit cards.”

This scheme has won him an insurance payout of 1.4 billion won.It involved 259 people.

The Financial Supervisory Service (FSS) investigated 58 suspicious hospitals.

Medical personnel, 168 people in all, as well as 3,891 people with insurance subscriptions, were involved in the plot.

The money swindled from such activities amounted to 32 billion won.

The money was supposed be for operations, daily fee for hospitalization, or compensation for the injuries.

“Insurance fraud involving medical institutions is relatively easy. That is why it is so widespread.

There are no actual victims here, so it allegedly lessens the conscience of guilt.”

said Hwang Dae-sung, an official of the FSS insurance Investigation Team.