National university hospitals face ₩400 bil. loss amid mass resignation of trainee doctors

National university hospitals are in dire straits after the number of patients dropped sharply due to the mass resignation of trainee doctors.

The hospitals’ deficit in the first half of the year totaled more than 400 billion won ($294 million), indicating that they are in danger of collapse due to capital erosion, a lawmaker said on Tuesday.

Rep. Baek Seung-ah of the opposition Democratic Party of Korea (DPK) analyzed the data on the financial damages to 10 national hospitals and found that their losses in the first half of this year were 412.7 billion won, up 155 percent from the 161.2 billion won in the same period last year.

Seoul National University Hospital had the most significant loss this year, with 162.7 billion, followed by Kyungpook National University Hospital with 61.2 billion won, Chonnam National University Hospital with 35.9 billion won, Pusan National University Hospital with 33 billion won, Chungbuk National University Hospital with 26.3 billion won, and Gyeongsang National University Hospital with 21 billion won.

Chonnam National University Hospital showed the largest decline in profit and loss ratio. It recorded a surplus of about 1.2 billion won in the first half of last year but suffered a deficit of 31.7 billion won this year, marking a 3,128 percent reduction in the profit-loss ratio.

Jeonbuk National University Hospital, which recorded a deficit of 19.5 billion won, followed Chonnam with a 2,275 percent drop in profit-loss ratio. Chungbuk National University Hospital, which lost 26.3 billion won, had a 1,961 percent drop in profit-loss ratio.

National university hospitals facing financial difficulties requested prompt financial support from the government.

Seoul National University Hospital said that the hospital's financial situation has deteriorated due to a decrease in medical revenue due to the treatment gap. The hospital added that it is trying to reduce the budget by promoting an emergency management system, but deficit operations are inevitable.

Kangwon National University Hospital faces capital erosion caused by trainee doctors' departures. Its administrative and financial burden has increased partly due to legal disputes, such as indemnity lawsuits resulting from the government’s ban on accepting the resignations of junior doctors. The hospital said that even if trainee doctors return, various evaluations and standards should be relaxed due to the lack of supervising specialists.

Pusan National University Hospital is recruiting volunteers due to a shortage of emergency room staff, but there are no applicants. The hospital said it operates with extended shift hours and noted that even if emergency medicine specialists provide primary care, it is difficult to provide follow-up care for various treatments.

There is a severe shortage of pediatric emergency room personnel. Military and public health doctors often refuse to make prescriptions or work nights and holidays, so pediatric emergency specialists are needed.

Chonnam National University Hospital said that to prevent medical staff burnout, it is necessary to support physician manpower and improve various payment systems to levels comparable to tertiary general hospitals. In addition, to ensure that national hospitals can serve as the last bastion of the regional medical care completion system, they must increase the percentage of government funding for contributions and receive state support to replace aging medical equipment, the hospital added.

Jeju National University Hospital also faces difficulties recruiting doctors due to its regional specificity. It called for government policies and financial support to stabilize the medical staff. Chungnam National University Sejong Hospital also emphasized the need for stabilization funding as its accumulated deficit is serious.

“The government should provide emergency support at the national level to prevent further deterioration,” Rep. Baek said. “It must stop ad hoc policies and responses and solve fundamental problems. President Yoon Suk Yeol should take a decisive stance and solve the problem he made.”