Seoul Asan Hospital "Net Loss of 51.1 Billion Won in 40 Days... Government Compensation Only 1.7 Billion Won"

More than 40 days after residents left medical sites in protest against the government's increase in medical school admissions, it has been reported that Seoul Asan Medical Center, one of the 'Big 5' large hospitals, has exceeded a deficit of 50 billion won.

On the 3rd, Park Seung-il, director of Seoul Asan Medical Center, directly revealed this information in a group email sent to affiliated professors. Director Park began his message by saying, "It has been well over a month since the residents left the hospital, and difficult times continue," and added, "We have been operating under an emergency management system since the 15th of last month."

He continued, "The net loss in the medical field over the 40 days from February 20 to March 30 is 51.1 billion won. The government's support through fee increases during this period was only 1.7 billion won." Furthermore, he stated, "Assuming the situation continues or worsens, the net loss is analyzed to reach approximately 460 billion won by the end of this year."

A closure notice is posted in a ward of a university hospital in Seoul, where a large hospital has started downsizing operations by reducing the number of beds and staff. Photo by Jinhyung Kang aymsdream@

원본보기 아이콘

Director Park cited the high increase in the rate of decreased medical services as the main reason for the large losses. He said, "The reason for the unusually large loss lies in the fact that among the Big 5 hospitals, our hospital has a very high rate of decrease in medical services," adding, "Excluding Seoul National University Hospital, our hospital has the highest decrease rate." He explained, "The outpatient decrease rate is 11% at Samsung Seoul Hospital, whereas ours is 17%, and the inpatient decrease rate is 28% at Seoul St. Mary's Hospital, but ours is 43%."

Finally, Director Park requested professors to cooperate in expanding medical services and reducing costs, announcing measures such as ▲ reduction of academic activity funds ▲ restrictions on participation in overseas conferences ▲ reduction of department funds ▲ adjustment of payment dates for incentives to improve medical services.

He said, "I apologize for implementing these measures without prior consultation," and added, "This decision was made through estimating the limits of hospital sustainability via various simulations, so I ask for your broad understanding." Currently, more than 200 of the 520 residents and over 200 of the 330 fellows at Seoul Asan Medical Center have left the hospital.

Meanwhile, due to the resident shortage, university hospitals in Seoul are reportedly losing more than 1 billion won per day in large hospitals compared to last year, and about 700 million won in medium-sized hospitals. In particular, Seoul National University Hospital, which was already in deficit, has seen daily sales drop by 1 billion won due to this situation, doubling the limit of its overdraft account from 50 billion won last month to 100 billion won. Additionally, on the 2nd, it declared a transition to an 'emergency management system.'

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.