Hospitals' delayed payments on gov¡¯t loans increase burden on people

Since the 1970s, the government has provided over 3 trillion won in syndication loans from Asia Development Bank to 246 hospitals for medical equipment. However, it has been revealed that the government has recovered only 105 billion won from the hospitals, aggravating the burden laid on the people.

According to audit and inspection material submitted by the Ministry of Health And Welfare to Kim Myung-Sup, a Millennium Democratic Party lawmaker and representative of the National Assembly¡¯s Health and Welfare Committee, the government has to gradually repay the ADB loan whether or not the hospitals repay their dues by 2012. However as of the end of last year, 63 hospitals hadn't repaid over 100 billion won of the loan.

Representative Kim asserted that if no action was taken against these hospitals, they would increase the tax burden on the people. Kim further asserted that the government should take stronger measures such as deducting the loan amount due when paying medical insurance to the hospitals.