Reasons for Proposal
Where a permission to establish a medical institution is revoked, business is suspended, or other such dispositions are used to address an unlicensed hospital, unlicensed provision of medical services, or other violations of the Medical Service Act, and the persons concerned transfer the medical institution before the commencement of or during the disposition to evade the disposition, the current Act is unclear as to whether the disposition is transferable. In contrast, the National Health Insurance Act prescribes that the business suspension of a medical care institution is transferable, making it impossible to evade the disposition.
A recent investigation by the Anti-Corruption and Civil Rights Commission found that some founders of medical institutions who were disqualified due to false claims for medical expenses for prohibited medical services continued to operate their medical institution during the disqualification period by taking advantage of loopholes to change the founder, or by closing down the medical institution and establishing a new medical institution under the name of other medical personnel.
Accordingly, the Amendment prescribes that where an administrative disposition has been taken against a medical institution for unlawful establishment or unlawful provision of medical services, etc., the effectiveness of the disposition shall be transferable to any transferee of the said medical institution, thereby aiming to ensure the effectiveness of administrative dispositions (Article 64, paragraphs 4 and 5 newly inserted).
Major Provisions
Where an administrative disposition has been taken against a medical institution for unlawful establishment or unlawful provision of medical services, allow the effectiveness of the disposition to be transferred to any transferee, etc. (Article 64, paragraphs 4 and 5 newly inserted)
Prescribe an obligation to inform transferees, etc., of the fact of the administrative disposition, and impose an administrative fine for non-compliance (Article 64, paragraph 5 and Article 92, paragraph 1, subparagraph 6 newly inserted)
