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Policy planning to strengthen the finance of non-profit hospitals and Analysis of its potential implications on South Korean Health care Market.doc

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Policy planning to strengthen the finance of non-profit hospitals and Analysis of its potential implications on South Korean Health care Market.doc

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Policy planning to strengthen the finance of non-profit hospitals and Analysis of its potential implications on South Korean Health care Market.doc

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文档介绍:“Policy planning to strengthen the finance of non-profit hospitals and Analysis of its potential implications on South Korean Health care Market”
Merkur S., Saka O., Samyshkin Y.
Consulting report
November 13, 2005
Executive summary
This report was written under a consulting agreement between the Korean Health Industry Development Institute (KHIDI), South Korea, and a team of UK-based consultants who specialize in health care systems and health economics, Ms Sherry Merkur, Dr Omer Saka, and Mr Yevgeniy Samyshkin.
The purpose of the report is to inform policies in South Korea of the intended introduction of investment policies into a for-profit hospital sector, and on factors that have to be taken into consideration in strategic decisions, design and implementation of such policies. The aim of the intended change in policy, according to discussions with KHIDI (Dr Son Jung-Kook, munication), is to strengthen the finance of health care through investments in new for-profit hospitals, to reduce the responsibility for investing in hospital infrastructure from the government and to open up the market to for-profit hospitals that can function as businesses and pay taxes. However, the policy faces a divergent reactions among health care stakeholders in Korea, ranging from full support to open rejection by various interest groups.
Policy question. The policy question under investigation in this report can be broken down into the following ponents: (1) The identification of the role of private investment in new hospitals and (2) parative advantages/disadvantages of for-profit (investor owned) vs. not-for-profit health care institutions. In the case of South Korea, those questions are de-facto answered by the nature of the hospital service provision which is predominantly run through the private sector, for-profit and not-for-profit models. Therefore, the core question to address in the suggested policies is the model of private investment in hospital infrastructure