Concerns About the Administrative Integration Law's Circumvention for Creating For-Profit Hospitals in Jeju
Concerns are rising that the Administrative Integration Special Law currently under consideration in the National Assembly could allow for-profit hospitals to be established outside the National Health Insurance framework.
In South Korea, the Administrative Integration Special Law is facing scrutiny as it may provide loopholes for the establishment of for-profit hospitals. Currently, the Medical Law prohibits for-profit entities, like stock companies, from founding or managing hospitals. However, exceptions exist under various laws aimed at attracting foreign investment, such as the Economic Free Zone Act and the Jeju Special Act, which allow foreign-funded hospitals to be established if foreign investment exceeds 50%. The new Administrative Integration Special Law could broaden these exceptions by designating certain special zones as Economic Free Zones, potentially expanding the permissible regions for for-profit hospitals.
The bill that has been submitted to the National Assembly underscores concerns regarding its implications. Proposals to create a 'Global Future Special Zone,' which could be classified as an Economic Free Zone based on specific criteria set by the Mayor of the unified metropolitan city in Daegu and Gyeongbuk, raise alarms about the easing of restrictions on for-profit medical institutions. Although provisions related to international logistics zones were discussed in another special law for the Jeonnam and Gwangju region, they were recently removed during the legislative process due to civic concerns and pending legislation.
Activist groups, including the Movement for the Realization of Free Medical Care, have voiced their apprehensions regarding the potential for the legislation to facilitate for-profit hospital establishment and have urged the National Assembly's Legislation and Judiciary Committee to eliminate problem clauses or add conditions that would forbid such operations. They emphasize that, given the severe inequality in healthcare access, any advancement in regional healthcare should focus on enhancing public health services rather than commercializing healthcare delivery.