Busan Police Agency Arrests Hospital Director and Nurse Who Embezzled 960 Million Won
Medical Supplier Who Paid 100 Million Won for Exclusive Drug Supply Also Apprehended
Hospital staff specializing in insurance fraud, who received physical therapy on behalf of a mother and massages on behalf of a husband, and who claimed insurance payouts by presenting fake hospitalized patients, have been arrested along with patients who participated in the fraud.
The Busan Metropolitan Police Agency announced on the 9th that they had arrested the director of a Korean medicine hospital and the head nurse in charge of consultations, and apprehended a total of 103 individuals related to the hospital, including patients, on charges of operating a hospital specializing in insurance fraud from June 2022 to early March this year. The hospital, which involved Korean medicine doctors, specialists, nurses, and brokers, issued 138 false medical records and fraudulently claimed 960 million KRW in indemnity insurance payouts.
A pharmaceutical supplier who provided a 100 million KRW rebate in exchange for exclusive drug supply was also caught.
According to the police, the director of Hospital A hired an elderly doctor, but had nurses handle all actual prescriptions and treatments. Patients accepted the hospital's offer to issue false medical records and receipts, thus participating in the crime.
The hospital attempted to continue their crimes by concealing key evidence in preparation for crackdowns, but the full extent of their activities was uncovered during the police investigation. The police stated that, in order to recover criminal proceeds, they took pre-indictment preservation measures to seize real estate assets worth approximately 250 million KRW from the suspects.
The Busan police signed an MOU with the Financial Supervisory Service earlier this year to exchange information and crack down on organized insurance fraud crimes, and it is known that all individuals involved in this case were apprehended in cooperation with the Financial Supervisory Service.
A police official emphasized, "We will thoroughly investigate and strictly punish insurance fraud, which undermines trust in the insurance system and harms innocent policyholders."
Prescription substituted with massage instead of high-frequency treatment. Photo by Busan Police Agency
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