[Sportschosun Reporter Jang Jong-ho] As police carried out a raid over allegations of insurance fraud worth hundreds of billions of won, Jaseng Oriental Medicine Hospital pushed back, saying the claims were groundless.
According to the medical community and police, the Financial Crime Investigation Unit of the Metropolitan Investigation Unit at the Seoul Metropolitan Police Agency executed search warrants on the morning of the 9th at five locations, including Jaseng Oriental Medicine Hospital in Gangnam District and the Jaseng Medical Foundation.
Earlier, four insurers, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, were reported to have filed complaints with police, alleging that Jaseng Oriental Medicine Hospital indiscriminately prescribed herbal medicine to traffic accident patients and collected hundreds of billions of won in insurance payouts. The complaint reportedly names 23 defendants, including the chairman of the Jaseng Medical Foundation and the heads of 21 Jaseng Oriental Medicine Hospital branches nationwide.
Under relevant laws, medical staff must prescribe herbal medicine individually according to a traffic accident patient's symptoms and condition.
Police are expected to secure prescription records and other materials in the raid and analyze whether there were signs of organized insurance fraud.
In response, Jaseng Oriental Medicine Hospital denied the allegations of insurance fraud and other claims.
In a statement released that day, the hospital said some reports claiming that it had "indiscriminately prescribed factory-made herbal medicine to traffic accident patients" or that it was "suspected of insurance fraud worth hundreds of billions of won" were completely untrue and amounted to one-sided claims without objective evidence.
It also explained, "As a rule, herbal medicine is prescribed individually after comprehensively considering the patient's symptoms, constitution, medical history, and test results," adding, "We prepare herbal medicine based on each patient's prescription in accordance with relevant laws and medical standards, and all dispensing is carried out individually according to each patient's prescription." It continued, "Batch production and batch administration, as alleged by some, are impossible both under medical principles and in actual treatment. Similar complaints and accusations by insurers have been filed repeatedly in the past, but investigative authorities have issued 'no charges' or 'no referral' decisions. To date, a total of eight no-referral decisions have been made in cases involving the same or similar issues, and the allegations have not been substantiated."
The hospital added, "We believe that some insurers' repeated complaints over the same issue may amount to an abuse of the right to file a complaint, and we are deeply concerned that this could discourage normal medical treatment at hospitals and negatively affect patients' freedom to choose care. We take seriously any act that damages a medical institution's reputation and trust through false or distorted claims. Going forward, we will actively consider all possible legal measures, including false accusation charges, against those involved in false complaints and claims that differ from the facts."
A Jaseng Oriental Medicine Hospital official added, "We will continue to strictly comply with relevant laws and medical ethics, and do our utmost to provide customized treatment tailored to each patient's condition and to safely prepare herbal medicine."
Reporter Jang Jong-ho bellho@sportschosun.com
