Introduction of 'Public Policy Fee' Pilot Project to Prevent Collapse of Pediatric Public Healthcare

Recruitment of Institutions for Pilot Project on 'Deficit Post-Compensation' for Pediatric Public Specialized Medical Centers

[Asia Economy Reporter Jo In-kyung] A pilot project for 'public policy fees' will be implemented for severe pediatric diseases, whose treatment base is weakening due to the decline in the child population.

The Ministry of Health and Welfare announced that starting from January next year, it will conduct the 'Children's Public Specialized Medical Center Post-Compensation Pilot Project' and will recruit participating institutions for four weeks from the 17th.

This pilot project is the first step in implementing the 'public policy fees' presented as a government national agenda. To strengthen support for pediatric specialized medical infrastructure, a representative type of essential medical care, a new payment system of lump-sum post-compensation rather than an additional fee for individual medical services has been introduced. During the pilot project period, it aims to support the maintenance of essential medical infrastructure by region and establish a foundation where pediatric patients and their guardians can receive sufficient specialized treatment nearby.

Previously, the government supported the construction costs of specialized hospitals to build infrastructure for specialized treatment of severe pediatric patients, and since 2017, it has designated Children's Public Specialized Medical Centers and provided separate fees. However, due to demographic changes such as low birth rates causing a decrease in demand itself, the current fee-for-service payment system based on treatment volume has limitations, prompting consideration of a new payment system with post-compensation for deficits.

Among the 10 Children's Public Specialized Medical Centers nationwide, institutions participating in the pilot project will expand essential personnel over three years starting next year and carry out key projects tailored to each center's characteristics, such as short-term hospitalization and home medical services. The Ministry of Health and Welfare plans to evaluate each institution's level of personnel acquisition, severe pediatric treatment performance, and implementation of business plans to compensate as much as possible for losses inevitably incurred during the treatment process.

Minister of Health and Welfare Cho Kyu-hong said, "This pilot project is part of the public policy fees to strengthen the public role of health insurance," and added, "We hope to establish a foundation where appropriate treatment for severe pediatric diseases can be provided whenever and wherever needed."