[Exclusive] Over 400 Billion Won to Be Allocated for Medical Institution Loss Compensation in 3rd Disaster Relief Fund

Each Hospital Expected to Receive 300 to 400 Million KRW Monthly... Funded Through Contingency Budget

On the 13th, when the mandatory mask-wearing policy for public transportation and medical institutions began, citizens wearing masks were seen walking at Sindorim Station in Guro-gu, Seoul. From this day forward, mask-wearing is mandatory for users and workers of public transportation and medical institutions, as well as attendees of gatherings. Additionally, mask-wearing can be enforced in other facilities depending on the social distancing level. After a one-month grace period, fines will be imposed starting from the 13th of next month. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] The government has decided to invest 400 billion won in compensating losses for medical institutions treating patients with the novel coronavirus infection (COVID-19).

On the 28th, according to the Democratic Party of Korea and the government, the ruling party and government agreed to provide 400 billion won in support to medical institutions that provided hospital beds for COVID-19 patients. A key official from the ruling party and government stated, "Basically, support will be provided only to hospitals that offered beds and suffered losses due to being unable to admit other patients."

The ruling party and government estimate that about 300 medical institutions per month have applied for loss compensation. If approximately 130 billion won is supported monthly during the first quarter, it is estimated that each hospital could receive about 300 million to 400 million won in compensation per month on average.

Considering the fluid situation of COVID-19, the ruling party and government intend to provide support through contingency funds. However, if the number of confirmed COVID-19 cases surges sharply and the resulting damage increases, additional contingency fund investments cannot be ruled out.

When the government pays the preliminary amount to the Ministry of Health and Welfare, the Ministry’s Central Accident Response Headquarters (CARH) Loss Compensation Review Committee will comprehensively consider factors such as bed provision and revenue decline to determine the final payment amount per hospital. The preliminary amount is a concept of partially paying losses provisionally calculated before the final loss is confirmed.

The Loss Compensation Review Committee paid 126.9 billion won to 210 medical institutions, including base dedicated hospitals and screening clinics, and 12.9 billion won to medical institutions, pharmacies, and general businesses that were closed or suspended due to quarantine reasons on the 25th.

Meanwhile, the government invested 500 billion won in compensating losses for directly affected medical institutions during the MERS outbreak in 2015.

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