The police have launched an investigation into 12 medical institutions suspected of engaging in so-called 'cashback' practices, where a portion of medical expenses is returned to cancer patients.
The National Police Agency announced today (July 15) that it received a request for investigation from the Ministry of Health and Welfare regarding 12 hospitals and clinics suspected of medical expense cashback schemes and has assigned the cases to the respective dedicated investigation teams.
The institutions under investigation include 5 in Daegu, 3 in Gwangju, 2 in South Jeolla Province, 1 in Seoul, and 1 in Northern Gyeonggi Province.
By type of institution, they consist of 5 nursing hospitals, 6 traditional Korean medicine hospitals, and 1 clinic.
As the cashback practices of some medical institutions recently became a subject of controversy, the Ministry of Health and Welfare formed an administrative investigation team for abnormal and fraudulent medical practices to receive reports and conduct on-site inspections.
As of July 13, approximately 50 reports had been received, and the ministry requested investigations into medical institutions where the reports were deemed highly credible and requiring prompt action.
These hospitals are suspected of using methods that go beyond simple medical expense refunds, such as operating non-benefit packages, abusing private medical insurance, and providing cash or goods.
In the case of Hospital A, reports indicated that it presented non-benefit packages based on the length of hospitalization like hotel packages and operated in a way that medical staff provided treatment according to those packages, while also offering cashback to patients with private insurance by returning an amount equivalent to the statutory patient co-payment.
For Hospital B, reports were received that it falsely overcharged for patient treatment records and then returned 20% to 40% of the payment amount to patients in cash, or provided vouchers for health supplements while simultaneously operating a health supplement sales business.
The administrative investigation team plans to continue nationwide on-site inspections and will immediately request police investigations if there are specific reports of suspected cashback schemes or illegal 'office-manager hospitals.'
If it is determined that medical personnel have violated medical ethics guidelines, the ministry plans to refer them to the ethics committees of relevant organizations, such as the Korean Medical Association and the Korean Hospital Association, following an expert review in cooperation with those groups.
The National Police Agency stated, "We plan to cooperate closely with relevant agencies, including the Ministry of Health and Welfare, to respond strictly and thoroughly to illegal acts that defraud insurance finances."