Lee says corporate hospitals need careful study
Published: 16 Dec. 2009, 21:20
The Blue House reported yesterday that President Lee Myung-bak on Monday said government approval of corporate-run hospitals needs to be carefully considered, given the sensitivity of the matter.
The president’s position came a day after two state-run think tanks unveiled cost-benefit analyses of opening hospitals to private investments.
Blue House spokesman Lee Dong-kwan quoted the president as saying, “It would be right to push ahead [with a corporate hospital project only] after public opinion is collected to a sufficient degree and the general public is persuaded.”
The Welfare Ministry and Finance Ministry - two government bodies directly involved in the issue - differed widely in their interpretations of the president’s comments. The Welfare Ministry said President Lee tried to “show his intention not to proceed with adopting corporate hospitals.”
However, the Finance Ministry said the core part of Lee’s remarks lies in “pushing the plan forward after prudent review.”
Blue House spokesman Lee told reporters yesterday morning, “It is true that the issue of corporate hospitals open to investments should proceed with a long-term perspective. It has been consistently discussed for the sake of national competitiveness and job creation.” Another key Blue House official said Lee was siding with neither of the ministries.
“Lee must have been psychologically drained by the widening scope of controversies,” said a lawmaker with the Grand National Party.
Given that a number of controversial issues now being debated remain unresolved - the four rivers project, alternative development plans for Sejong City and the prosecution’s investigation into alleged bribe taking by former Prime Minister Han Myeong-sook - Lee may not want yet another hot button to emerge, according to sources with the party.
“President Lee may have considered the scenario of being criticized for siding with the haves,” said a source in the political community.
“There can be concern that only the affluent will benefit [from corporate-run hospitals]. Some people will feel wronged if they are sick and discriminated against,” the president said on Monday.
Currently, Korean law bans hospitals from operating like listed firms and pursuing maximum profits for shareholders. While some say corporate-run hospitals will push up medical expenses and raise health insurance costs, others say such hospitals will promise quality medical service.
The Korea Development Institute and the Korea Health Industry Development Institute - working for the Finance Ministry and the Welfare Ministry, respectively - presented possible effects of such corporate hospitals.
The former said the hospitals would create more jobs, whereas the latter said the medical service gap between different regions would grow. The separate results led both ministries to cancel a scheduled media briefing.
President Lee has prioritized the medical industry as a growth engine.
By Seo Ji-eun [[email protected]]
The president’s position came a day after two state-run think tanks unveiled cost-benefit analyses of opening hospitals to private investments.
Blue House spokesman Lee Dong-kwan quoted the president as saying, “It would be right to push ahead [with a corporate hospital project only] after public opinion is collected to a sufficient degree and the general public is persuaded.”
The Welfare Ministry and Finance Ministry - two government bodies directly involved in the issue - differed widely in their interpretations of the president’s comments. The Welfare Ministry said President Lee tried to “show his intention not to proceed with adopting corporate hospitals.”
However, the Finance Ministry said the core part of Lee’s remarks lies in “pushing the plan forward after prudent review.”
Blue House spokesman Lee told reporters yesterday morning, “It is true that the issue of corporate hospitals open to investments should proceed with a long-term perspective. It has been consistently discussed for the sake of national competitiveness and job creation.” Another key Blue House official said Lee was siding with neither of the ministries.
“Lee must have been psychologically drained by the widening scope of controversies,” said a lawmaker with the Grand National Party.
Given that a number of controversial issues now being debated remain unresolved - the four rivers project, alternative development plans for Sejong City and the prosecution’s investigation into alleged bribe taking by former Prime Minister Han Myeong-sook - Lee may not want yet another hot button to emerge, according to sources with the party.
“President Lee may have considered the scenario of being criticized for siding with the haves,” said a source in the political community.
“There can be concern that only the affluent will benefit [from corporate-run hospitals]. Some people will feel wronged if they are sick and discriminated against,” the president said on Monday.
Currently, Korean law bans hospitals from operating like listed firms and pursuing maximum profits for shareholders. While some say corporate-run hospitals will push up medical expenses and raise health insurance costs, others say such hospitals will promise quality medical service.
The Korea Development Institute and the Korea Health Industry Development Institute - working for the Finance Ministry and the Welfare Ministry, respectively - presented possible effects of such corporate hospitals.
The former said the hospitals would create more jobs, whereas the latter said the medical service gap between different regions would grow. The separate results led both ministries to cancel a scheduled media briefing.
President Lee has prioritized the medical industry as a growth engine.
By Seo Ji-eun [[email protected]]
with the Korea JoongAng Daily
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