mtpolitical(jin ki nam)
TRANSCRIPT
Globalization of Healthcare in Korea:
Policy and Political Issues
IMTJ Medical Travel Summit 2016
Jin, Ki Nam
Dept of Health Administration
Yonsei University
I. Introduction
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.
Background Background
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
Government’s needs to
develop new growth engine
Policy for
globalizing
healthcare
Competitive
medical
technology
& services
Background
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
II. Policy for Globalizing Healthcare
Inbound
policy
Globalization of Healthcare
Outbound
policy
Policy Approach
Synergy Effect
Medical
Tourism
Foreign
Direct
Investment
Development
of
Healthcare
Industry
Globalization of Healthcare
Improvement
of
National
Brand
Economic Development
Policy Goal
Strategy
Strategy
Legal & institutional
System
G2G Network
Research
Information System
Project Support
Marketing
· 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
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
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
Integrated information portal on foreign healthcare market
Newsletter
Making Ad materials (e.g., video, pamphlet)
Information System
Developing customized project for target nation
Developing business model & HR
Consulting services
Financial support (for research, consultation, initial cost for overseas expansion)
Project Support
Hosting global conference or event (e.g., FAM tour)
Making special task force team
Supporting FAM tour
Website (e.g., visitmedicalkorea)
Marketing
III. Current trend of globalization of healthcare
Figure 1. Number of foreign patients
Inbound Trend
Nation 2011 2012 2013 2014
Average
annual
growth
rate (%)
USA 27,529 22.5 30,582 19.2 32,750 15.5 35,491 13.3 8.4
Japan 22,491 18.4 19,744 12.4 16,849 8.0 14,336 5.4 ∆14.9
China 19,222 15.7 32,503 20.4 56,075 26.5 79,481 29.8 41.7
Russia 9,651 7.9 16,438 10.3 24,026 11.4 31,829 11.9 32.5
Mongolia 3,266 2.7 8,407 5.3 12,034 5.7 12,803 4.8 6.4
Canada 2,051 1.7 2,756 1.7 2,770 1.3 2,941 1.1 6.2
Vietnam 1,336 1.1 2,231 1.4 2,988 1.4 3,728 1.4 24.8
Philippines 1,178 1.0 1,787 1.1 1,848 0.9 2,032 0.8 10.0
UAE 158 0.1 342 0.2 1,151 0.5 2,633 1.0 128.8
Kazakhstan 732 0.6 1,633 1.0 2,890 1.4 8,029 3.0 177.8
Table 1. Nationality of medical tourists - top 10 (2011~2014)
Unit : person, %
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)
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)
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
IV. Political Issues
Ruling party
Government
Tourism
industry
Media
Hospitals/
Clinics
Opposition
party
Public
opinion
Academic
scholars Positive
Negative
Figure 1. Opinions of key stakeholders
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:
-Quality improvement
-Technology
development
-Employment
Ruling party Anti-neoliberalism:
-Healthcare as a
public good
Focus on the equity
in healthcare access
Outcome:
-Two-tier healthcare
system
-Price hike
Opposition party
Sustainability of national healthcare system
· Foreign direct investment in healthcare
Employment
Global hub of healthcare:
-Development of
healthcare industry
Economic development
Ruling party Inequity
- Distrust
Exposure to clinical risk
Profit withdrawal to
overseas:
-Limited effect on
economic development
Opposition party
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
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
Political Issues
Privatization of healthcare
Sustainability of national healthcare
system
Accessibility
Detraction of public fund
Thank you
Ki Nam Jin
Dept of Health Administration
Yonsei University
Korea