South Korean private hospitals face medical device supply monopoly

National Assembly member Nam In-soon has raised concerns regarding the monopoly of medical device supplies within South Korea's private tertiary general hospitals. Data from the Korea Medical Device Safety Information Institute reveals that 27 out of 35 private tertiary hospitals—approximately 77%—receive over 90% of their medical devices from a single wholesaler.

In many cases, 17 of these hospitals are supplied with more than 99% of their equipment by a single entity. This stands in stark contrast to public hospitals, which utilize multiple wholesalers. The investigation highlighted instances where indirect supply companies (Gannapsa) with ties to hospital foundations or school corporations hold these monopolies.

For example, Seoul St. Mary's Hospital receives the majority of its supplies through Opera Salutaris, a company linked to its founding Catholic academic corporation. Additionally, Carecamp, a subsidiary of MBK Partners-owned Geo-Young, reportedly supplies over 90% of medical devices to 10 of the 26 private tertiary hospitals surveyed.

Representative Nam warned that these practices may lead to unfair trade, excessive margins, and negative impacts on national health insurance finances. She called for a thorough investigation into the price differences between purchase and supply costs to prevent the privatization of public health insurance funds.