Crisis of Healthcare Industry
The domestic healthcare industry, which is estimated to reach 5 trillion won (US$4.9 billion) in size next year according to the Electronics and Telecommunications Research Institute, is drawing much attention, as the trend of convergence between information technology, biotechnology, and medical technology is spreading around the world. Unfortunately though, the healthcare business of local information and communication technology (ICT) companies such as SK Telecom, KT, Samsung Electronics, and LG Electronics is at a crisis, as the legal and social systems are failing to catch up with the progress of the trends.
One of the typical examples is Health Connect, which was jointly established by SK Telecom and the Seoul National University Hospital (SNUH), but is about to be stranded due to opposition from the medical sector. The company is currently providing Health On, a tailored healthcare service making use of smartphones and activity trackers, along with the hospital finder of Patient Guide and the tablet PC-based Bedside Station service for inpatients. These smart hospital solutions are not directly related to medical care, but have encountered the medical privatization issue. The labor union of SNUH has recently defined Health Connect as a for-profit subsidiary of a medical corporation, which is prohibited by the current law, and started a strike on July 21 claiming that SK Telecom stop the business in which patients’ personal information could be gathered without consent.
KT, on its part, set up HOOH Healthcare with Severance Hospital, and has prepared hospital information systems, IT-based healthcare services, hospital management assistance, and medical informatizaiton projects. However, the progress has been slow from the get go.
Samsung Electronics mounted a heartbeat sensor on the Galaxy S5, but released the phone in March with the function deactivated due to regulations surrounding electronic medical devices. Then, the Korea Food & Drug Administration revised its notice to categorize it as a heartbeat sensor for exercise and leisure purposes, so the handset can legally provide the function.
Google and Apple, in the meantime, are poised to dominate the global healthcare market with their Google Fit and Health Kit platforms, while Korean companies are mired in regulations and social backlash. These services collect a wide range of body state information such as blood pressure and heart rate.
The Korean government is failing to mediate the conflict, though. The Ministry of Health and Welfare is planning to revise the enforcement regulations of the Medical Care Act to allow medical corporations to establish for-profit subsidiaries and expand the scope of medical business by attracting foreign patients. However, the opposition parties, medical and healthcare organizations, and civic groups are strongly opposed to the revision to lower the possibility of implementation. The first pilot project for remote healthcare, which was planned to be started in June, is going nowhere due to the controversy surrounding medical privatization, too.