South Korea Adjusts Healthcare Funding: Emergency Support Ends, Focus Shifts to Long-Term Care
Seoul, South Korea – In a significant shift in healthcare policy, South Korea’s Ministry of Health and Welfare announced today the phasing out of temporary emergency health insurance support implemented earlier this year in response to potential doctor group actions. While emergency measures are being scaled back as the national healthcare system shows signs of recovery, the government is simultaneously investing in bolstering primary care, hospital services, and crucially, at-home care for seriously ill children. This move signals a transition from crisis management to a more sustainable, long-term approach to healthcare funding.
Emergency Support Winding Down, Essential Services Protected
The emergency support, initiated in February 2024, comprised ten items designed to minimize disruptions in care. Four of these have already been integrated into standard fee structures. Of the remaining six, two – including crucial additional consultation fees for emergency room specialists – will also become permanent features of the healthcare system, recognizing their vital role in maintaining emergency medical capacity. The remaining four temporary support measures will be discontinued.
This decision comes after the lifting of the ‘serious’ level of the national healthcare crisis warning and the dissolution of the government-wide emergency response system. Officials emphasized that the overall medical system has demonstrated a recovery, allowing for a return to more standard operational procedures. Regional emergency medical centers, which saw strengthened treatment capabilities during the emergency period (a 16.0% increase in severe emergency patient share), will see their temporary support end in December after a final performance evaluation.
A New Funding Model: Prioritizing Undercompensated Care
Perhaps the most notable aspect of today’s announcement is the government’s move away from uniform price increases for healthcare services. Instead, they will be utilizing a “conversion index-linked finance” model to increase relative value scores for historically undercompensated activities. This means directing financial resources specifically to areas where healthcare professionals have been receiving inadequate reimbursement.
Clinics will see a 0.76% increase in initial consultation fees, backed by KRW 19 billion in funding. Hospitals will benefit from increased medication and dispensing fees, with KRW 32.5 billion allocated. Specifically, hospital dispensing fees for discharged patients will increase by 30%, while outpatient and inpatient dispensing, along with sterile preparation for injections, will see increases ranging from 30% to 50%. This targeted approach aims to address long-standing imbalances in the healthcare payment system.
Expanding Support for Pediatric Home Care
Recognizing the unique challenges faced by families caring for seriously ill children at home, the Ministry of Health and Welfare is expanding nursing care benefits. Previously limited to ventilators and oxygen concentrators, support will now include pulse oximeters, airway suction devices, and enteral nutrition pumps. This expansion is expected to significantly improve the quality of life for these children and ease the financial burden on their families, allowing for more effective disease management within a home environment.
This move reflects a growing global trend towards prioritizing preventative and community-based healthcare solutions. Investing in at-home care not only improves patient outcomes but also reduces the strain on already overburdened hospital systems. The long-term benefits of this approach are expected to be substantial, fostering healthier communities and a more sustainable healthcare model.
The Ministry of Health and Welfare affirmed its commitment to strengthening the nation’s capacity for severe and emergency treatment, outlining plans for designating additional emergency medical institutions and refining compensation structures. This latest policy shift demonstrates a proactive approach to healthcare, balancing immediate needs with a vision for a more resilient and equitable system. Stay tuned to archyde.com for continued coverage of this evolving story and its impact on healthcare access across South Korea.
