Health ministry widens fake-treatment probe to warehouse-style pharmacies

South Korea's health ministry said Thursday it will investigate two hospitals or clinics suspected of luring patients with illegal rebates and one warehouse-style pharmacy suspected of illegal establishment and operation, expanding its administrative probe into abnormal and fraudulent medical practices beyond clinics to pharmacies for the first time.

The fourth round of inspections, to be carried out jointly with related agencies during October, follows three earlier rounds conducted since June. The targets were selected based on reports filed with the abnormal and fraudulent treatment reporting center through September and on suspicions that have been raised repeatedly.

The decision to add pharmacies to the scope reflects a rise in reports of illegal practices centered on large warehouse-style pharmacies, including license lending and improper interference in operations. The pharmacy under investigation is suspected of being effectively set up and run by a non-pharmacist through a related corporation, with operating profits funneled to that company — a pattern in which a company engaged in leasing and drug wholesaling hires a pharmacist to register as the pharmacy's owner while directing the actual business.

The two clinics are suspected of attracting patients in exchange for returning part of their medical costs, or of refunding a portion of fees to patients who spend more than a set amount on treatment. One report also described patients registered as outpatients who stay in hospital rooms like inpatients while receiving partial refunds of their medical bills.

"We have expanded the scope of the investigation to pharmacies, following hospitals and clinics," said Kwak Soon-heon, who heads the administrative inspection team and serves as the ministry's director of health and medical policy.

"We will examine the reported details closely and respond strictly in cooperation with related agencies if any violations are confirmed," he said, adding that public interest and active reporting are essential to rooting out abnormal and fraudulent treatment.

Anyone — including medical institution and pharmacy workers, patients and their families — can report suspected cases by calling 129 or emailing [email protected].