The Impact of COVID-19 on Medical Institutions in Korea: Focusing on Financial Losses

Abstract

Purposes: It is known that medical institutions suffered substantial financial losses due to the COVID-19 pandemic, but studies that specifically identified the size of losses are lacking. This study aims to analyze in detail how much financial loss medical institutions suffered in 2020, at the beginning of the COVID-19 pandemic.Methodology: This study used national health insurance claim data from 2018 to 2020 provided by the Health Insurance Review and Assessment Service. Financial losses were conceptualized and classified as the increase or decrease in total medical expenses or the proportion of increased or decreased institutions. The trend of total medical expenses was analyzed by medical institution type, health insurance qualification type, and treatment type (inpatient/outpatient).Findings: The results showed that the decrease in medical expenses due to COVID-19 was the largest at clinic-level medical institutions, and the distribution of each clinic’s increases and decreases was wide. In addition, almost all of the pediatrics and otolaryngology clinics had a reduction in medical expenses due to COVID-19.Practical Implications: Medical institutions have been pleading about the pain caused by the COVID-19 pandemic. However, it was known that the decrease in total medical expenses in 2020 compared to 2019 was insignificant. This study overcame the trap of average through more detailed analyses, confirming the need for differentiated policy support in the event of a similar situation.