1. Globalization of Healthcare in Korea:
Policy and Political Issues
IMTJ Medical Travel Summit 2016
Jin, Ki Nam
Dept of Health Administration
Yonsei University
3. The Republic of Korea is the 12th largest economy in the world.
The main industries: semiconductor, electronics, steelmaking, shipbuilding,
and automotive.
The export oriented economy
The Korean government looks for new growth engine.
BackgroundBackground
4. 5th in Bloomberg’s Most Efficient Health Care Ranking(2015)
Healthcare information technology (expanded to global market)
Competitive services (e.g., Aesthetic medicine, Oriental medicine)
Increasing importance of healthcare industry in the economy
(potential for creating more jobs)
Background
5. Government’s needs to
develop new growth engine
Policy for
globalizing
healthcare
Competitive
medical
technology
& services
Background
6. The objectives of this presentation are:
1) To explain the policy for globalizing healthcare in Korea
2) To describe the current trend of globalization of healthcare
3) To explain the political issues related to globalization of healthcare
Objective
11. · Making a new law (related to globalization of healthcare)
1) Allowing non-profit healthcare organizations to start meditel business for foreign
patients
2) Allowing non-profit healthcare organizations to make subsidiary company for
hospital export
· Changing the existing law(e.g., Medical Law, Immigration Law)
1) Medical visa
2) Loosening the regulation on medical advertisement
3) Allowing the foreign direct investment in healthcare
· Public/private joint task force team
(control center for supporting globalization of healthcare)
· National certificate of global medical tourism coordinator
Legal & Institutional System
12.
13. Overseas branch offices (e.g., KHIDI, KTO, KOTRA)
MOU between nations
Offering training courses to healthcare workers in other nations
Official Development Assistance(ODA) projects
(e.g., KOICA, Economic Development Cooperation Fund)
G2G Network
14. Research on inbound/outbound strategy
Research on foreign healthcare market: market characteristics & barriers
Research on inbound/outbound strategies of other nations
Research on the needs of behaviors of foreign patients, etc
Research
15. Integrated information portal on foreign healthcare market
Newsletter
Making Ad materials (e.g., video, pamphlet)
Information System
16. Developing customized project for target nation
Developing business model & HR
Consulting services
Financial support (for research, consultation, initial cost for overseas expansion)
Project Support
17. Hosting global conference or event (e.g., FAM tour)
Making special task force team
Supporting FAM tour
Website (e.g., visitmedicalkorea)
Marketing
21. Department
Rank
1 2 3 4 5
Internal Medicine
Russia China USA Mongolia Kazakhstan
16,107(20.3) 14,493(18.3) 12,483(15.7) 5,385(6.98) 3,792(4.8)
Health Examination
Russia China USA Kazakhstan Mongolia
10,251(28.6) 6,117(17.1) 4,219(11.8) 3,087(8.6) 2,012(5.6)
Dermatology
China Japan USA Russia Kazakhstan
12,739(42.5) 3,542(11.8) 3,261(10.9) 2,928(9.8) 1,169(3.9)
Plastic Surgery
China Japan Russia USA Kazakhstan
24,854(68.6) 1,561(4.3) 1,506(4.2) 1,212(3.3) 748(2.1)
Obstetrics &
Gynecology
Russia China USA Mongolia Kazakhstan
4,348(22.8) 3,681(19.3) 2,304(12.1) 2,073(10.9) 714(3.8)
Orthopedics
USA China Russia Mongolia Kazakhstan
3,359(17.5) 3,235(16.8) 2,777(14.5) 1,225(6.4) 605(3.1)
General Surgery
Russia China USA Mongolia Kazakhstan
2,843(22.8) 2,319(18.6) 1,433(11.5) 894(7.2) 687(5.5)
Oriental Medicine
Japan China Russia USA Kazakhstan
4,586(39.1) 1,210(10.3) 882(7.5) 608(5.2) 359(3.1)
(Unit : person, %)
Table 2. Nationality of medical tourists by major departments (2014)
22. Nation Average Payment
UAE $13,187
Kazakhstan $3,544
Russia $2,994
Indonesia $1,905
Mongolia $1,767
China $1,519
Saudi Arabia $1,467
USA $1,339
Uzbekistan $1,124
Vietnam $1,047
Japan $781
Table 3. Average payment by nationality of medical tourists(2014)
(Unit : USD)
23. 79
91
111
125
141
2011 2012 2013 2014 2015
Overseas expansion of Medical
institution by year
52
33
9 8 8
31
Overseas expansion of Medical
institution by region
KHIDI Report(2015)
Outbound trend
26. Privatization of healthcare
· New law (allowing meditel business and subsidiary company by healthcare
organizations)
Neoliberalism:
-Deregulation
-Healthcare as a
private good
Focus on the
development of
healthcare industry:
-New revenue
source
Outcome:
-Qualityimprovement
-Technology
development
-Employment
Ruling
party Anti-neoliberalism:
-Healthcare as a
public good
Focus on the equity
inhealthcare access
Outcome:
-Two-tierhealthcare
system
-Price hike
Opposition
party
27. Sustainability of national healthcare system
· Foreign direct investment in healthcare
Employment
Globalhubofhealthcare:
-Development of
healthcare industry
Economic development
Ruling
party Inequity
- Distrust
Exposuretoclinicalrisk
Profit withdrawal to
overseas:
-Limited effecton
economicdevelopment
Opposition
party
28. Accessibility
· Export-oriented policy
Economic
development:
- Dollar earning
Development of
healthcare industry
Improvement of
national brand
Ruling
party
Limitation in
positive effect:
-Development
-National brand
Negative effect:
-Doctor shortage
-Accessibility
problem
-Financial risk
Opposition
party
29. Detraction of public fund
· Project support & Marketing activities
Government’s role
to develop new
market
Long-term
investment
Ruling
party Detraction of
public fund to
support the
private market
Inefficiency:
- Waste of money
(low ROI)
No evidence of
effectiveness
Opposition
party
