As university hospitals reel from a financial crisis following the resignation of medical residents, one is even considering suspending salary payments.

According to the medical community, Oh Joo-hyeong, president of Kyung Hee University Medical Center, sent an email titled "Dear Kyung Hee University Medical Center Faculty and Staff" on April 30. The email said that the hospital is in such a management crisis that it has to consider suspending salary payments from June and introducing the early retirement program.

"In March, we decided to switch to an emergency management system and have been implementing financial stringency steps with your active cooperation and participation," Oh said. "Nevertheless, the hospital is in a dire situation, with a deficit exceeding 100 million won ($73,610) every day, accumulating losses, and its very existence is seriously threatened by the worst management crisis in its 53 years of history."

According to the simulation results, if the current situation continues, the hospital will face a desperate situation in which it will have to consider stopping the payment of salaries from next month and introducing ERP, Oh added.

"To overcome the management crisis, we are cutting costs by, for instance, implementing unpaid leave, staff’s return of allowances and performance bonuses, collectively cutting administrative and operating expenses, and reducing capital investment, but there are limits," he said.

"Some of our staff may remain complacent, thinking that if large-scale funding is secured through bank debt and deferred payment of medical bills, the risks will be resolved immediately," Oh said. "However, the possibility of securing external funding is very uncertain, and borrowing funds will always be an obstacle to the future growth of Kyung Hee University Medical Center, which will be passed on to juniors in great pain."

The hospital head appealed to the staff to work together to overcome the management crisis.

"I would like to apologize to the faculty and staff who have been sparing no effort and support in a difficult environment," Oh said. "However, I ask you to make every effort to survive the medical center before it reaches an irreversible situation."

Oh continued, "All of the management team, including myself, will make every effort to normalize operations as soon as possible so that you can work in a better environment. I ask everyone to recognize the current crisis, play their part, and gather wisdom.