Major hospitals face billions of won per day in deficits due to walkout

ons of won every day on the “big five” general hospitals in Seoul, including Seoul National University Hospital (SNUH) and Asan Medical Center.

According to medical circles, both SNUH and Asan have incurred daily deficits of about 1 billion won (US$751,868) stemming from the aftermath, and SNUH has recently doubled the size of its bank credit line to 100 billion won.

Additionally, struggling private general hospitals are seeking government assistance.

“We have received a proposal from some private university hospitals to expand the government’s loan program for private universities,” an education ministry official said.

The ministry’s Korea Advancing Schools Foundation is currently managing a 60 billion-won loan program to help finance construction projects or the purchase of medical facilities and equipment by private university hospitals. The program’s yearly interest rate is 2.67 percent, much lower than the market rate of about 5.22 percent.

The ministry official said, however, the hospitals’ request cannot be immediately granted because it pertains to a budget issue that requires consultations with the finance ministry.

In efforts to combat declining revenues, several general hospitals nationwide have introduced unpaid leave programs and are accepting applications from nonphysician staff, such as nurses and personnel in the hospital administrative or technical divisions

Other major hospitals have also reduced their health care services by integrating separate wards or scaling back ward operations.