Prepaid Hospital Bill Scams Surge... Consumer Agency Issues 'Warning'

by Cho Seongpill

Published 20 Apr.2023 08:42(KST)

Multiple Cases Reported at Dermatology and Plastic Surgery Clinics

Medical institutions that first collect consultation fees by offering discount benefits and then refuse refunds or demand excessive penalties when consumers request contract cancellations have recently surged.

A consumer is examining a detailed statement of medical expenses issued by a healthcare institution. [Image source=Yonhap News]

The Korea Consumer Agency announced on the 20th that the number of damage relief applications related to refusal of refund of remaining consultation fees and excessive deductions received from the beginning of this year to February reached 71 cases, a 91.9% increase compared to the same period last year. Related damage relief applications have shown an increasing trend every year, with ▲68 cases in 2020 ▲89 cases in 2021 ▲192 cases in 2022. By medical department, dermatology accounted for the most with 148 cases (35.2%), followed by plastic surgery with 125 cases (29.8%), dentistry with 59 cases (14.0%), and Korean medicine with 44 cases (10.5%).

Most medical institutions were found to have refused requests for refund of prepaid consultation fees on the grounds that simple change of mind by consumers does not constitute a reason for contract cancellation. However, the Consumer Agency emphasized that even if the contract is canceled due to consumer circumstances, all costs except penalties and procedure fees can be refunded. It added that medical contracts are mandate contracts under civil law, which can be terminated by either party at any time, and compensation liability arises only if the cancellation causes damage to the medical institution.

The Consumer Agency urged consumers to make careful decisions regarding lump-sum prepayment of consultation fees and to thoroughly check the refund criteria before contract signing. A Consumer Agency official advised, "There are many cases where consumers are immediately induced to sign contracts on-site by promoting first-come-first-served and limited-time discount events," and added, "If there are contract terms unfavorable to consumers, they should be cautious about entering into the contract."

The Consumer Agency plans to request the Korean Medical Association and others to strengthen education and guidance for medical institutions.