Lee 'will strengthen public nature of medical sector'

Lee Jae-myung takes office... ‘will strengthen the public nature of medical and pharmaceutical sectors”

Anticipation rise for revitalization of medical and platform industries by removing geographic barriers and the institutionalization of telemedicine

“Measures needed to address drug shortages, including incentives and INN-based prescriptions”

With the election of President Lee Jae-Myung, the legal community predicts that the government will strengthen its public policy in the healthcare and pharmaceutical biotechnology sectors.

 

The areas of AI-based digital healthcare industry, rare and intractable disease coverage, and regional essential medical infrastructure will see new opportunities.

 

There are also predictions that the medical industry and related platform technology industries will be revitalized as the institutionalization of non-face-to-face medical care (telemedicine) and home visits will expand the provision of medical services beyond geographical limitations.

 

There are also analyses that public support for the pharmaceutical industry will expand, increasing opportunities for pharmaceutical and biotechnology companies.

 

On the 4th, Shin & Kim LLC announced this in a special report on the results and impact of the 21st presidential election.

 

President Lee Jae-Myung announced in his campaign pledge that he would strengthen the public nature of the medical and pharmaceutical industries.

 

According to Shin & Kim LLC analysis, the new government will strengthen the public return support system through national R&D investment to foster the pharmaceutical and bio industries.

 

In particular, it is expected that the government will establish a public consignment production and distribution system for essential medicines and promote the construction, public acquisition, and conversion of public hospitals.

 

With the expansion of public support for the medical and pharmaceutical sectors, opportunities will rise for relevant companies, and the industry recommended parties to closely monitor the new government's efforts to achieve the two goals of strengthening public nature and fostering industry growth.

 

To resolve supply instability and establish a stable supply system for essential medicines, the report suggested that policy measures should be developed with a focus on providing incentives to pharmaceutical companies and promoting limited International Nonproprietary Names (INN) based prescriptions.

 

With the promised establishment of a regional essential medical care fund, policies to strengthen regional essential medical care infrastructure centered on regional medical schools and national university hospitals are expected to be promoted, which is seen as an increase in opportunity for regional medical institutions.

 

Shin & Kim LLC stated that in terms of strengthening health insurance reimbursement coverage for medicines, particular focus will be placed on treatments for rare and intractable diseases.

 

It is anticipated that the door to health insurance coverage for high-priced innovative drugs targeting rare and intractable diseases will be expanded and that the threshold for new drugs to enter health insurance coverage will be significantly lowered through the expansion of the Risk Sharing Agreement (RSA) scheme.

 

In line with the pledges to institutionalize telemedicine and expand home visits and primary care physician systems, it is analyzed that policies for medical services that transcend geographical limitations will activate the medical industry and related platform industries.

 

The Lee Jae-myung administration's medical reform plan sets out to organize a public debate committee as central governance, where medical professionals, experts, patients, and citizen representatives participate.

 

Shin & Kim LLC diagnosed that it is necessary to closely monitor the direction set for the medical delivery system that starts from outpatient clinics to tertiary hospitals, regional medical infrastructure, and medical personnel supply to predict and respond to changes in the industrial landscape.

 

Shin & Kim LLC explained, “The strengthening of the public nature of the medical and pharmaceutical industries will increase corporate social responsibility and alter the structure of market competition,” emphasizing the need for proactive measures in response.

 

It added, ”The importance of profit management for medical institutions and related companies will increase due to the strengthening of price management for non-reimbursed medical services to stabilize Korea’s national health insurance finances.”