Study on arguments for and against the introduction of domestic for-profit-hospitals in Jeju Special Self-Governing Province

Abstract

Following the regional media reports on introduction planning of domestic for-profit hospitals in Jeju Special Self-Governing Province in June 5. 2008. there had been social and political arguments nationwide for and against the establishment of for-profit hospitals. However, the dispute is expected to be repeated again in 2009. even several times in the future. In these circumstances. analysis and evaluation are needed on the past experiences related to policy issues of introducing domestic for-profit hospitals in Jeju. Therefore. the present study aims to discuss and clarify major policy issues on arguments for and against the establishment of for-profit hospitals in Jeju Special Self-Governing Province. In this review, author introduce the concepts of macro-efficiency, Quality of health care, equity of medical care utilization, and regional economic developments in the process of analysing the impacts of the introduction of domestic for-profit -hospitals in Jeju. The results of this study are as followings. First the introduction of domestic for-profit hospitals in Jeju Special Self-Governing Province is closely connected to nationwide Free Economic Zones, and thus it is considered as the introduction of domestic for-profit-hospitals on a national scale. Second. the strongest driving force of introducing domestic for-profit hospitals is private insurance capital in Korea. Third. For-profit hospital has nothing to do with Quality medical care. Forth, the establishment of domestic for-profit hospitals lowers the macro-efficiency and equity of medical utilization. Filth, the establishment of domestic for-profit hospitals does not have an aclual effect on regional economic developments in Jeiu. Both residents' health and regional economy are essential elements inachieving future prospects of the newly emerging Jeju Special Self-Governing Province. There is no evidence that the introduction of domestic for-profit hospitals has a positive impact on residents' health and regional economy in Jeju. Also, in July 24-25. 2008. Jeiu residents rejected fhe governor's proposal of introducing domestic for-profit hospitals in Jeju because of anxiety about higher costs and inequity of medical careTherefore, both central and Jeju provincial governments need to take into much more consideration the introduction of domestic for-profit hospitals in both aspects of policy justification and substantial political democracy.