National university hospitals mark huge deficit in H1 due to Yoon’s reckless policies

The entire national university hospital system is mired in deficits.

Ten national university hospitals recorded losses exceeding 350 billion won ($249 million) in the first half of this year alone, with Seoul National University Hospital (SNUH)'s deficit reaching around 130 billion won.

According to parliamentary audit materials received by Rep. Kim Moon-soo of the Democratic Party of Korea, SNUH recorded revenue of 1.51 trillion won in the first half of this year. However, its total costs reached 1.64 trillion won, resulting in a deficit of 135.6 billion won. This figure combines the main hospital and Seoul National University Bundang Hospital (SNUBH), with the latter's deficit amounting to 2.36 billion won.

Until 2023, SNUH maintained a bed occupancy rate exceeding 80 percent per half-year, with outpatient visits exceeding 2 million and inpatient admissions exceeding 500,000 per year. However, patient numbers have sharply declined since last year when the conflict between doctors and the government intensified, and they have not recovered this year.

In the first half of this year, SNUH's bed occupancy rate remained in the 60 percent range. Outpatient visits totaled 1.72 million, and inpatient admissions reached 360,000, representing decreases of over 300,000 and 140,000, respectively, compared to pre-conflict levels.

Analysis indicates that while medical revenue stagnated due to a weakened patient base, total costs, including fixed expenses such as personnel and facility management, continued to rise steadily, thereby widening the deficit.

This situation is not unique to SNUH. Data received from 10 national university hospitals in the first half of this year shows that all of them recorded deficits, with the total deficit amounting to 350.2 billion won. This figure combines the main hospitals and their branch hospitals.

Examining the first half deficits of the 10 hospitals, seven saw their deficits decrease compared to the same period in the previous year. However, Kangwon National University Hospital, Gyeongsang National University Hospital, and Jeju National University Hospital experienced larger deficits.

For the first six months of this year, Kangwon National University Hospital recorded a deficit of 1.25 billion won, Gyeongsang National University Hospital recorded 3.86 billion won, and Jeju National University Hospital recorded 1.41 billion won.

“The reckless policies of the Yoon Suk Yeol administration have plunged national university hospitals into a quagmire of deficits,” Rep. Kim said. “If national university hospitals falter due to financial difficulties, it will inevitably threaten public health and safety. A government-level mid- to long-term strategy is necessary.”