South Korean Authorities Raid Gangnam 'Manager Hospitals' for Medical Law Violations

A government joint investigation team has launched a sweeping raid on "manager hospitals" in Seoul's affluent Gangnam district, suspected of operating in violation of medical laws. The operation targets medical facilities allegedly controlled by non-medical professionals who illegally use physicians' names to establish and run clinics.

The joint investigation team, led by prosecutor Lee Jeong-hoon, conducted searches and seizures at several medical institutions in Sinsa-dong, Gangnam-gu, starting on July 29. The team also reportedly raided offices of other corporations associated with the suspected non-medical operators.

During the raids, investigators secured crucial evidence, including hospital establishment and operation contracts, financial transaction records, accounting ledgers, and digital data. These materials are expected to shed light on the actual funding sources, profit-sharing arrangements, and instances of name-lending by medical professionals.

The Supreme Prosecutors' Office established the joint investigation team in May to combat healthcare fraud. The team comprises 30 members, including four prosecutors, seven police officers, and 19 officials from various government bodies such as the Ministry of Health and Welfare, the National Health Insurance Service, the Health Insurance Review & Assessment Service, the National Tax Service, and the Financial Supervisory Service. Their mandate includes investigating cases of excessive non-insured medical treatments, fraudulent insurance claims, and the illegal establishment and operation of medical facilities like manager hospitals.