KMA "Court Ruling Encouraging Introduction of For-Profit Hospitals... Serious Concern"

[Asia Economy Reporter Yoo Hyun-seok] The Korean Medical Association expressed "serious concerns about the court ruling that encourages the introduction of for-profit hospitals" in response to the court's decision that Jeju Province's condition limiting treatment of Korean nationals at the country's first for-profit hospital, Green Land International Hospital (hereafter Green Land Hospital), is unfair.

On the 5th, the KMA explained in an official statement, "For-profit hospitals will degrade medical institutions from their original role to tools for profit generation."

The Jeju District Court ruled in favor of the plaintiff, Green Land Jeju Healthcare Town Co., Ltd., a subsidiary of China's Green Land Group, in the 'Cancellation of Foreign Medical Institution Establishment Permit Conditions' lawsuit filed against Jeju Province, stating, "The defendant's conditions for granting the Green Land Hospital establishment permit to the plaintiff are canceled."

This was because Jeju Province's 'condition' to restrict treatment of Korean nationals at Green Land Hospital and operate the hospital only for foreign tourists lacked legal grounds and was deemed illegal.

The KMA stated, "The ultimate purpose of medical institutions is to protect patients' lives and health," adding, "The reason the Medical Service Act limits the establishment of medical institutions to non-profit corporations is to emphasize the public nature of healthcare and to prevent significant harm to patients if opened to for-profit activities." They further pointed out, "This ruling could become the cornerstone for overturning the existing Medical Service Act and legalizing for-profit hospitals."

The KMA expressed concerns that "the introduction of for-profit hospitals will not end as an issue of a single hospital but is highly likely to transform Korea's medical system and healthcare system into a profit-driven model," warning that "it will lead to a vicious cycle such as the elimination of essential medical departments and the successive closure of local small and medium-sized medical institutions, ultimately collapsing the healthcare system."

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