Upper limit differs by hospital size

The government will disallow hospitals to pay commission to agents who attract foreign patients more than 30 percent of total medical costs, the Ministry of Health and Welfare said.

The official notification that sets the upper limit on commissions went into effect on Feb. 15.

According to the notice, the fees should not exceed 30 percent of total medical expenses at clinics, 20 percent at hospitals and general hospitals, and 15 percent at larger general hospitals.

The ministry will cancel the business licenses of violating institutions or slap fines equivalent to the amount exceeding these limits, officials said. It has set such ceilings based on fact-finding surveys and discussion with hospitals and agents in June and August, respectively.

Since the government permitted the attraction of foreign patients in 2009, the number of foreigners who visited Korea for treating their ailments topped 1.2 million as of the end of 2015, recording an increase of 30.5 percent a year on average, the officials said,

However, some illegal brokers have demanded excessive charges, which led to the inflation of medical expenses and caused distrust in Korea’s medical services among foreigners.

“The government expects the new measure will help keep brokers from charging undue fees, and will continue to make efforts to improve the attractiveness of the Korean healthcare industry, cracking down on illegal brokers and introducing an award system,” a ministry spokesman said. “Our objective is to promote the sustainable development of the industry by attracting more foreign patients to excellent hospitals.”

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