Review on the current reformation of the physician surcharge in Korea

ABSTRACT

The reform of the physician surcharge system in Korea, which was applied beginning August 1, 2014, reduced the financial burden from three major non-covered services. However, hospital financial balances, already negatively affected by the longstanding impact of lower reimbursement from the social insurance system, are likely to decline further. Now is the time for the Korean government to introduce policies that can solve the fundamental problems, caused by low contributions and a limited benefit design, that have distorted health care system. Tertiary care hospitals cannot expect significant revenue from increasing the numbers of beds and expensive equipment, as in the past. Tertiary care hospitals are members of the public health system and are social enterprises intended to contribute to the development of society. Policies should reinforce the traditional hospital model, with a focus on high quality of care, educational training, research, and public health leadership, but also on development of new business models, such as official development assistance and medical tourism. Above all, the government should accept that, in contrast to economy market rules in many other contexts, medical services are not determined according to supply and demand. The government must seek amendment of the relevant laws and regulations, including sustainable benefit plans, in order to provide high quality of care. For the successful implementation of government reform, the government should not ignore procedural justice in the allocation of resources.