41 Suspected Illegal Medical Institutions Including 'Samujang Hospitals' Detected... Government's Determination to Eradicate 'Everyday Corruption'

If Investigation Confirms Facts, 328.7 Billion KRW of Unjust Profits to Be Recovered
Anti-Corruption Commission, Ministry of Health and Welfare, and National Health Insurance Service Collaborate to Eradicate 'Everyday Corruption'

Eunjung Park, Chairperson of the Anti-Corruption and Civil Rights Commission./Photo by Honam Moon munonam@

[Asia Economy Reporter Moon Chaeseok] Forty-one medical institutions suspected of being so-called 'office manager hospitals,' where non-medical personnel open and operate medical institutions under the name of medical professionals, have been detected. The government plans to recover 328.7 billion KRW in unjust profits if the investigation confirms the facts. This demonstrates the government's commitment to eliminating 'everyday unfairness and privileges (everyday corruption).'

On the 17th, the Anti-Corruption and Civil Rights Commission announced that, together with the Ministry of Health and Welfare and the National Health Insurance Service, it conducted a joint government investigation over four months from August to November last year into fraudulent insurance claims by illegally established medical institutions, identifying 41 suspicious institutions and referring them to the police for investigation.

The National Health Insurance Service plans to recover 328.7 billion KRW in health insurance medical benefits and medical aid costs paid to these institutions as unjust profits if the police investigation confirms that these medical institutions were illegally established.

The investigation found that among the 41 suspected illegally established medical institutions, there were 19 clinics, 8 nursing hospitals, 7 Korean medicine hospitals and clinics, 4 hospitals, and 3 dental hospitals and clinics. By region, 14 were in the metropolitan area, 12 in the Yeongnam region, 8 in the Chungcheong region, and 7 in the Honam region.

A representative case involved a non-medical real estate rental business owner conspiring with doctors to open and operate medical institutions. The non-medical person purchased a medical building and, in collusion with a dentist who was a friend and an internist who was a relative, illegally established medical institutions and nominally delegated management to the dentist.

The joint investigation was initiated from the awareness that fraudulent insurance claims by illegally established medical institutions threaten the soundness of the National Health Insurance finances and the quality of medical services, thereby endangering public health. It is a government message to eradicate everyday corruption.

The 50 medical institutions targeted for investigation were selected after internal review by examining characteristics of each institution, the opening and closing history of the founders, and past connections with office manager hospitals. Additionally, from July 18 to September 30 last year, a focused reporting period for insurance fraud by illegally established medical institutions was operated.

The Anti-Corruption and Civil Rights Commission, the Ministry of Health and Welfare, and the National Health Insurance Service regard office manager hospitals as the main culprits of National Health Insurance financial leakage and threats to public life and safety, and have established a policy to continuously crack down and eradicate them going forward.

This content was produced with the assistance of AI translation services.