[Asia Exclusive] Baek Nam-jong, Director of Bundang Seoul National University Hospital: "A Time of Medical Paradigm Shift... We Will Create the Best 'Future Hospital'"

When Considering Readiness for Digital Healthcare
Need to Gather Medical Data and Foster Industry Growth

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'Healthcare Innovation Park' Collaborates with Over 30 Companies

'Chogoryeong Society Research Institute' Studies Future Medicine
Ultimately, Expansion of Home Care, Caregiving, and Telemedicine Expected

Last Year’s Sales Surpassed 1 Trillion Won, Rapid Growth
Brand Power, Motivation, and Organizational Culture Achievements

Baek Nam-jong, Director of Bundang Seoul National University Hospital, is being interviewed by Asia Economy on the 29th. / Photo by Moon Ho-nam munonam@

[Interview with Youngju Cho, Head of Biohealth Department, Summary by Kwanju Lee] "The medical paradigm is changing as we experience COVID-19. Bundang Seoul National University Hospital aims to become the best 'future hospital' by realizing a biomedical cluster model similar to those in Boston and San Francisco, USA."

Next year marks the 20th anniversary of Bundang Seoul National University Hospital, which is dreaming of a new leap forward. Despite its relatively short history, the hospital has grown into a representative hospital of South Korea comparable to the so-called 'Big 5' hospitals located in Seoul, having surpassed 1 trillion KRW in revenue for the first time since its opening last year. Director Namjong Baek is leading the growth of Bundang Seoul National University Hospital and its evolution into a future hospital. He emphasized, "If we prepare well for the rapidly changing times such as the super-aged society and digital healthcare, a period of 'jump up' will surely come. As the only national university hospital in Gyeonggi Province, we will strengthen publicness while laying the foundation for growth as a future hospital." We met Director Baek on the 29th of last month at his office in Bundang Seoul National University Hospital, Seongnam-si, Gyeonggi Province.

-Last year, Bundang Seoul National University Hospital's revenue exceeded 1 trillion KRW for the first time. What is the secret to such rapid growth?

▲First of all, the brand power of Seoul National University Hospital cannot be overlooked. It was possible because patients and their families trusted the excellent medical staff. From the beginning, we aimed to develop the cancer and neuro-brain fields, which I believe are now the two representative fields of Bundang Seoul National University Hospital. Since its opening in 2003, the organization has been relatively young and highly motivated. Motivations such as 'Let's have a status befitting Seoul National University Hospital' and 'Let's become a top-tier general hospital' were strongly encouraged. Through this process, a harmonious organizational culture was created, and labor-management relations are good, maintaining a no-dispute status. We often say that the hospital should be a happy place for patients, their families, employees, and their families. This means creating a happy workplace, which I believe has been the foundation for continuous innovation and growth. Although we are not yet fully satisfied, we ranked 89th in the Newsweek World Hospital Rankings this year. Considering that Seoul National University Hospital exists separately, this is a remarkable achievement. Both Seoul National University Hospital and Bundang Seoul National University Hospital are recognized objectively for their excellence, which means we have made remarkable growth, and I take pride in that.

-The hospital's cutting-edge and digital transformation is a hot topic. Since your inauguration, you have emphasized a leap toward a future hospital. What specific direction are you taking?

▲We are experiencing a period of change in the medical paradigm due to COVID-19. Although healthcare is often mentioned as the next-generation growth engine, I question whether we are practically prepared. While there has been much talk about the hospital's publicness, I think preparation as an industry has been somewhat lacking. Therefore, I raised two key issues. The first is to become a '4th generation hospital' beyond the so-called '3rd generation hospital' through digital healthcare. We have been preparing to collect data well and connect it industrially in a valuable way. For example, if we create a cancer registry, the ways to utilize it would be endless. We are preparing to process such data for effective use. We have invested 10 billion KRW over three years in artificial intelligence (AI) internally and are collaborating and integrating with related companies and startups to excel in medical and digital healthcare. Our hospital is recognized internationally in the digital field. We developed an electronic medical record (EMR) system that has been exported overseas and benchmarked by foreign institutions. The second is to create a bio-complex cluster centered on the hospital. The 'Healthcare Innovation Park' established at the hospital is the core of this. These two will be the future face of the hospital.

Baek Nam-jong, Director of Bundang Seoul National University Hospital, is being interviewed by Asia Economy on the 29th. / Photo by Moon Ho-nam munonam@

-What kinds of companies are mainly located in the Healthcare Innovation Park?

▲First, there are hospital research facilities, and mainly early-stage venture companies. There are about 35 companies. We collaborate with the hospital and support the entire cycle, including animal testing and preclinical trials. If there is an idea, we aim to create a successful model that receives accelerator and venture capital (VC) investments and proceeds from patent acquisition to commercialization. Among the companies that have joined, six have been listed on KOSDAQ, and one has entered NASDAQ. Professors form groups to support companies and collaborate, which is also a distinctive feature. It is very difficult for startups to meet doctors. However, collaboration must happen from the beginning. Even if you ask doctors to use something after it is fully developed, if it is not the model they want, they will not use it well.

-Why is the hospital directly involved in fostering the bioindustry?

▲There are many hospital-centered clusters abroad. Moderna, famous for its COVID-19 vaccine, emerged from the Boston cluster centered on Harvard University Hospital. Abroad, hospitals exist alongside pharmaceutical companies and research institutes. Similarly, we aim to create a biomedical cluster model where companies and research institutes gather around the hospital. In Osong, for example, there are research institutes but no large hospitals. Fortunately, our hospital has a large site. The surrounding environment is also favorable, being close to Pangyo and Gwanggyo, and Seongnam has the highest number of medical device companies in Korea. Pharmaceutical companies also value research personnel and are reluctant to move their R&D departments below Yongin. Considering these points, I believe our hospital has many good conditions. We want to create a good model for fostering the healthcare industry.

-The super-aged society has become a reality. Medical care must inevitably change accordingly. The need to predict and prepare for future medical care has increased.

▲Future medical care will mix prevention, treatment, rehabilitation, and wellness. Some regions will disappear due to demographic changes. We must seriously discuss how to care for the elderly. In 30 years, the median age will be 58.7 years. Even though hospitals are crowded now and waiting times are long, what will happen when there is no one to bring patients to hospitals? The number of elderly living alone is increasing, and even with caregivers, it will be difficult to manage when they get sick. To overcome this, AI, medical robots, and caregiving will inevitably go together. Although there is resistance, home care, caregiving, and telemedicine will inevitably expand. It is important to prepare in advance which medical model to apply. We have formed a working group called the 'Super-Aged Society Research Institute' to discuss and study how our hospital should proceed. We also plan to create and spread a future model in Gyeonggi Province.

Baek Nam-jong, Director of Bundang Seoul National University Hospital, is being interviewed by Asia Economy on the 29th. / Photo by Moon Ho-nam munonam@

-The hospital's publicness is also an important issue during the COVID-19 situation. You have embarked on building an infectious disease specialized hospital. How is the progress?

▲Triggered by COVID-19, our hospital played the last bastion role as the only national university hospital in Gyeonggi Province. Publicness was a relatively weak area until now. Since we are a hospital owned by the state, we often tell our staff that we must fulfill that role firmly. The metropolitan area infectious disease specialized hospital is being promoted from this perspective. We are preparing a 342-bed facility by the end of 2027. Due to bed restrictions in the metropolitan area, we have first received approval for an additional 153 beds. The original plan by the Korea Disease Control and Prevention Agency was 36 beds with 6 intensive care units (ICUs), but we thought that was insufficient. Patients will come not only from Seoul and Gyeonggi but also from Incheon and Gangwon, so we decided to do it properly. We plan to build multi-bed rooms with 4 beds instead of 5. Although the number of beds will not increase much relative to the scale, we aim to overcome the infection-vulnerable structure through improved comfort. Furthermore, we are considering building a separate outpatient center in the long term. The existing hospital building will increase operating rooms and ICUs, and departments like ophthalmology and dermatology will be dispersed. Although it is efficient to have them in one building, I believe we should move toward utility and convenience rather than efficiency. The era of outpatient clinics in basements seems to be over.

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