For-profit hospital

The Jeju Special Self-Governing Province gave the final go-ahead for the nation’s first for-profit hospital Wednesday.

The island province approved the opening of the Greenland International Hospital on the condition that it caters only to foreign patients, including tourists.

The approval runs counter to that of the province’s public opinion evaluation committee, which in October recommended not allowing the hospital to open. However, the provincial administration appears to have taken into account a possible backlash from this, including damage to its credibility and a compensation suit filed by the foreign investors in the hospital.

The Ministry of Health and Welfare permitted China’s Greenland Group to build the hospital in the Jeju Healthcare Town on the island in December 2015.

The Chinese investors completed the hospital’s construction last year at the cost of 77.8 billion won ($69.9 million), and the facility applied for a permit to operate.

If a for-profit hospital starts business on Jeju Island, similar medical institutions could appear in any of the other eight free economic zones in the country, including Songdo in Incheon.

The central and provincial governments should take extra care not to let these concerns turn into a reality. Health regulators must take careful control and supervise closely, ready to revoke the hospital’s license in the case of rule violations.

In the worst-case scenario, the nation will also see the wealth gap among people lead to a broader medical divide, providing another cause for social conflict.

Despite all those concerns, the operation of a for-profit hospital can contribute to improving the quality of medical services and raising international competitiveness of the local healthcare industry. So it is important to minimize the ill effects of a profit-seeking hospital and maximize its potential.