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7 things hospitals for overseas expansion should keep in mind

기사승인 2017.01.20  18:42:47

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- KHIDI opens a guideline for overseas expansion of medical services

[by Du-hyeon Nam, KBMBR]

The government prepared for a supportive measure for medical institutions to go abroad with the law of Act on support for overseas expansion of healthcare system and attraction of international patients. Recently, it suggested a guideline that the institutions have to check.

The Korea Health Industry Development Institute (KHIDI) announced 7 things that medical institutions should consider for overseas expansion in ‘A comprehensive guideline for overseas expansion of healthcare system’ released together with the Ministry of Health and Welfare.

The major considerations for overseas expansion include ▲ the analysis of local medical markets ▲ building up Biz-model to create profits ▲ securing experts for overseas expansion ▲ securing local partners ▲ securing money for investment ▲ the localization of operation and marketing and ▲ hiring local people etc.

It has been advised it is effective to make a joint venture with local partners to solve problems such as heterogeneous medical culture, hiring local doctors, alienation problem with local patients, and various permissions etc. But it said the key is to find reliable partners.

KHIDI said, “Many domestic institutions are trying to make joint ventures with local partners to go abroad. If they don’t make clear partnerships, they may stop or delay their businesses.” And it goes to say, “It’s not good to excessively depend on local partners. They need to think their local partners can be changed at any time and have to control the relationships to minimize risks.”

It’s better to establish joint ventures with countries where legal and political uncertainty are high.

It says, “Local partners need to have a business history in the medical field such as hospital operation. If they don’t have the business history, they should have much interest in the healthcare business or should be the type of a corporation with sufficient capitals. After selecting candidates, Korean hospitals have to consult with local law firms or accounting firms. After selecting partners, they have to supervise them.”

And it emphasized that thorough localization is necessary to have competitive edge in a foreign country. Korean medical teams have to provide service considering local customs and cultures as well as medical facilities and equipment.

KHIDI said, “They have to implement marketing to publicize superior medical facilities. And they have to check the local medical laws not to get disadvantages. When they hire local people, they need to use the local network to find trusty partners. And also, they need to establish rules to set up an organization and break down works. It is necessary to improve a compensation system to secure qualified people.”

Du-hyeon Nam hwz@docdocdoc.co.kr

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