'Big Fight Predicted' KMA Says "Future Chaos Is Government's Responsibility" After Fee Negotiation Breakdown

Recently, the Korea Medical Association (KMA), which held nationwide simultaneous candlelight rallies and warned of a "major battle" against the government, issued a warning after the 2025 fee-for-service (酬價·medical service compensation) negotiations broke down, stating that "all responsibility for the upcoming medical chaos lies with the government."

[Image source=Yonhap News]

On the 1st, the KMA stated, "We solemnly declare the refusal of fee negotiations, feeling disillusioned by the disappointing behavior of the government, which only notifies fees under the guise of negotiation, and the National Health Insurance Service (NHIS) Financial Management Committee."

The KMA also criticized, "We repeatedly stated throughout the negotiation process that discussions on differential application of conversion factors by service type should be excluded from the negotiations, but the NHIS thoroughly ignored our voices until the last day of negotiations."

The KMA, which has been at odds with the government since the decision to increase medical school admissions, took a tough stance from the beginning of the negotiations, setting conditions such as a 10% fee increase and withdrawal of the differential application of conversion factors by service type.

The differential application of conversion factors by service type means increasing the conversion factor, which is multiplied by the current 'fee-for-service' (medical fees determined by the type and amount of medical services), only for undervalued medical services such as essential care.

Until now, the conversion factor has been uniformly increased regardless of service type.

The KMA argued, "In the current medical chaos, unilaterally conducting fee negotiations while ignoring healthcare providers once again will threaten the survival of primary care institutions and the foundation of public health," adding, "All institutional improvements made without the consent of medical professionals will lead to medical ruin."

They further stated, "We strongly condemn the NHIS's unilateral negotiation attitude once again and clearly state that all responsibility for the ensuing medical chaos lies with the NHIS and government authorities."

Earlier that day, the NHIS announced that after concluding negotiations that had continued since the previous day, the Financial Management Committee reviewed and approved an average fee increase rate of 1.96% for next year.

Among the seven health and medical organizations involved in the negotiations, talks between the KMA, representing primary care clinics, and the Korea Hospital Association, representing hospitals, broke down due to disagreements over the differential conversion factor application.

This marks the third consecutive year that fee negotiations with the KMA have failed.

On the same day, the Financial Committee recommended to the Health Insurance Policy Deliberation Committee that the NHIS not exceed the proposed increase rates for clinics and hospitals (1.9% and 1.6%, respectively).