On February 26, Jinju public hospital closed. Jinju public hospital has functioned as the main public hospital in the western area of Gyeongsangnam-do since 1910. Therefore, the closure of the hospital gave the residents of the area a shock. In 2008, Jinju public hospital expanded public health services in poor western areas, but just five years later it closed. Because the hospital was loosely run and got into 30 billion won of debt, Gyeongsangnam-do decided to close it. However, criticism that public hospitals are judged only by profitability was raised.
Jinju public hospital is a problem in Gyeongsangnam-do, but this situation is causing concern that the public health service in Korea faces a crisis. In 1977, Korea introduced National Health Insurance, and since the 1980s, the demand for medical services has increased. Because public hospitals were unprofitable, the government invested in private hospitals. Since then, private hospitals have grown rapidly. However low-income class people use public hospitals because the medical costs are affordable. Only public hospitals can provide low-income people with medical services. However, in Korea, the percentage of public hospitals is 5.9%, which is last among OECD countries Korea. Although public hospitals are unprofitable, these are necessary for low income class people.
Last year an evaluation of the state of local public hospitals was conducted. The total debt of 34 local public hospitals was 514 billion won. The reason why the debt is increasing is continuous deficits. Accordingly, some local public hospitals that suffer heavy deficits will be closed. However, last February, the Public Medical Service Act was revised to allow private hospitals run public health businesses. Because of this law, private hospitals cannot own public hospitals, but they can perform public medical services. Therefore, private hospitals can provide the public with necessary medical services, and medical services can be expanded. Because public hospitals have to compete with private hospitals, they will have to strengthen competitiveness and decrease their deficits. The government has to continue to devise ways for public hospitals to decrease their deficits.
The operation of public medical institutions is different in each area. Gyeongsangnam-do decided to close Jinju public hospital. On the other hand, Gangwon-do announced that it will invest 8 billion won in 5 local public hospitals to strengthen their competitiveness. Although there are financial problems, investment in public hospitals has to continue.
The government and local governments have to strengthen competitiveness not through a policy of closure but through support when public hospitals suffer a deficit. For the welfare of the public, the policy of closing public hospitals needs to be considered.
