Ulju Hospital faces operational crisis amid management disputes

Ulju Hospital, Ulsan’s first public hospital, is facing significant instability as the On Hospital Group Medical Foundation has twice declared its intention to withdraw from its private management contract within two months of operations. The foundation cited excessive administrative interference from Ulju County, restrictions on autonomy regarding medical equipment purchases, and damage to its reputation following local council criticism as primary reasons for the potential withdrawal.

To maintain operations, the foundation has requested increased support, including higher physician wages and residential support for the hospital director. Ulju County has already committed approximately 6.6 billion won to cover hospital losses this year. Despite efforts by the county head to negotiate, the foundation’s stance remains firm.

The hospital, built with 54.9 billion won to address medical gaps in the southern region, is currently struggling with staffing shortages. Several physician positions remain vacant, and specialized services, such as the kidney dialysis unit, have faced disruptions due to staff departures.

The ongoing conflict has prompted calls to re-examine public hospital management models. Alternatives being considered include direct government operation, similar to the Ulleung-gun Health and Medical Center, or establishing an independent public corporation, such as the Jinan-gun Medical Center, to balance professional management with public accountability.