Reasons for Proposal
Due to the public nature of medical services, the current Act prescribes that persons who may establish a medical institution shall be limited to physicians, dentists, oriental medical doctors, midwives, the State and local governments, medical corporations, nonprofit corporations established in accordance with the Civil Act or a Special Act, quasi-government agencies, local medical centers, the Korea Veterans Welfare and Health Care Corporation, etc., and prescribes that non-compliance shall be punishable by imprisonment of up to 5 years or a fine of up to 50 million won.
Despite such provisions, there have been cases where unlicensed hospitals are established by borrowing the name of a person who is qualified to establish a medical institution, and medical institutions are operated for profit-making purposes. There is a dire need for physicians and other insiders to voluntarily report such practices to clamp down on and eradicate unlicensed hospitals.
However, insiders are not exempt from license revocation or criminal penalties even if they have voluntarily reported information. Informants have no choice but to face substantial losses such as having their licenses revoked, which makes it difficult to expect voluntary reports in reality.
Accordingly, the Amendment newly inserts provisions to waive license revocation and criminal penalties, etc., for any medical personnel affiliated with an unlicensed hospital who has voluntarily reported information, thereby aiming to eradicate unlicensed hospitals.
There is also a need for efforts to stop unlicensed hospitals from the initial stages of establishment. In this regard, the Amendment newly inserts provisions requiring the establishment of medical institutions to be registered via a municipal or provincial physicians’ association, thereby aiming to root out unlicensed hospitals at the early stages.
Details
A. Newly insert provisions requiring the establishment of medical institutions to be registered via a municipal or provincial physicians’ association, thereby aiming to root out unlicensed hospitals at the initial stages of establishment (Article 33)
B. Newly insert provisions to waive license revocation and criminal penalties, etc., for any medical personnel affiliated with an unlicensed hospital who has voluntarily reported information, thereby aiming to encourage whistleblowing (Article 65 and Article 87)
