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In-depthReportonNationalSection
designed to offer patients timely and detailed
monitoring by healthcare providers. The new
medical services are expected to reduce overall
medical expenses and the time that patients
spend when visiting hospitals. This also allows
socially weak people an access to medical care
and provides a wider range of medical options.
This is why the government pushed hard for the
telemedicine system. The Ministry of Knowledge
Economy and Ministry of Health & Welfare were
behindthenewubiquitoushealthsystem(U-health
system).
Mrs.Yoon,wholivesinthecountryside,suffersfromhighbloodpressure.Sheneedstogotothe
hospital by herself for checkups regularly. However, she doesn’t have to make the trip anymore.
She can receive checkups by telemedicine equipment and doctors can examine her through the
telecommunication system. The U-health and telemedicine systems are similar; however, the
U-healthoneaddsmorecommercialaspects.
TheU-healthsystemprovidesmedicalservicesandcanmonitorhealthconditionswithnetwork
equipmentanytimeandanywhere.Underthisenvironment,patientscangethigh-qualitypersonal
medical care daily. Patients, U-health corporations and hospitals join together to offer improved
medical services. Corporations link people to the doctors, then patients give personal medical
informationtothedoctorsanddoctorsmanageeachpersonbasedontheinformation.
The second revision is that medical corporations can support the management of other medical
corporations. This includes the overall management of hospitals, educating employees and
financial affairs. Until now, medical corporations have been able to earn additional profits by
operatingparkinglots,cafeteriasandfuneralhallsathospitals.Medicalcorporationshadtoinvest
thisextramoneybackintothehospitalbecausemedicalcorporationsarenonprofitorganizations.
Currently,therearemanyhospitalsthatsufferfrompoormanagement,makingithardtoprovide
high-qualityservices.Butthegovernmentclaimsmedicalcorporationscanimprovemanagement
thankstotherevisedpolicy.Ultimately,thiswillallowpatientstoreceivesuperiormedicalcare.
Medicalcorporationsshouldcontinuetoremainnonprofitorganizations.
Finally, mergers between medical corporations are allowed. This is the first law on the issue.
Theabsenceofsuchalawledtosomeproblems.Forexample,brokersintervenedinmergersand
medicalcorporationswereoftendevalued.
This makes the passage of such a law extremely meaningful. A medical corporation that’s in
poor condition could receive a boost after merging with a top-notch medical corporation. The
government attests that the revised law will once again allow patients access to better medical
care.Thisconceptis,however,differentfromcommercialM&As.CommercialM&Asoccurina
unilateralway,butmedicalcorporationshavetoreceiveapprovalfromtheirboardsbeforemergers
cantakeplace.Also,mergersareonlyallowedbetweenmedicalcorporations,notbetweensmall-
to medium-sized hospitals. This is to stop large medical corporations from monopolizing the
medicalsystem.
ConcernsSurroundingTelemedicine
Despitetherevisions,opinionsstilldifferontheissue.MoonJeong-lim,thespokeswomanofthe
KoreanMedicalAssociation(KMA),saidtherevisedtelemedicinelawiscomprehensive.Shesaid
JUNE 2010

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