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Violation of the Medical Service Act

A violation of the Medical Service Act refers to conduct prohibited under the Medical Service Act, and upon violation, a person may be subject to criminal punishment as well as serious administrative dispositions such as license suspension or revocation.

CONTENTS
  • 1. Violation of the Medical Service Act | Concept
  • 2. Violation of the Medical Service Act | Main Types of Violations
    • - Unlicensed Medical Practice
    • - False and Exaggerated Advertising
    • - Establishment of a Non-Medical Owner Hospital
    • - Violation of Medical Record Management
  • 3. Violation of the Medical Service Act | Administrative Disposition
    • - License Suspension and Revocation Dispositions
    • - Cases Where Relief May Be Available
    • - Mitigation or Exemption of a License Suspension Disposition
  • 4. Violation of the Medical Service Act | Methods of Response
    • - Responding to a Police Investigation
    • - Administrative Appeal and Administrative Litigation
  • 5. Violation of the Medical Service Act | Need for Legal Assistance

1. Violation of the Medical Service Act | Concept

Acts constituting a Medical Service Act violation

A violation of the Medical Service Act means any act that violates the Medical Service Act, the statute concerning medical practice and the operation of medical institutions.

The Medical Service Act strictly regulates medical practice and the operation of medical institutions as a whole, and where it is violated, a medical practitioner or medical institution may bear not only an administrative disposition but also criminal punishment at the same time.

2. Violation of the Medical Service Act | Main Types of Violations

A violation of the Medical Service Act can occur in various forms, and the legal liability and level of punishment differ depending on each type of violation.

Unlicensed Medical Practice

Unlicensed medical practice refers to a case where a person without a medical license performs a medical act, or where a licensed medical practitioner performs a medical act beyond the scope of the practitioner's license.

This is strictly prohibited under the Medical Service Act, and because it can pose a serious risk to public health, strong criminal punishment is imposed.

▶ Article 87-2 of the Medical Service Act (Penal Provisions)

Unlicensed medical practice

Imprisonment with labor for not more than 5 years or a fine of not more than 50 million won

False and Exaggerated Advertising

The act of a medical institution or medical professional advertising medical services with content that is false or exaggerated also constitutes a violation of the Medical Service Act.

False or exaggerated advertising is conduct that is clearly prohibited under the Medical Service Act, and if detected, an administrative disposition together with criminal sanctions may be imposed concurrently on the medical professional or medical institution that is the advertising party.

▶ Article 89 of the Medical Service Act (Penalty Provisions)

False or exaggerated advertising

Imprisonment for up to 1 year or a fine of up to 10 million won

Establishment of a Non-Medical Owner Hospital

When establishing or operating a medical institution, the requirements and procedures prescribed by law must be strictly observed.

An office-manager hospital refers to conduct in which a person without legal qualification actually establishes or operates a medical institution.

▶ Penalties for office-manager hospitals

Office manager who operated the office-manager hospital

(Article 87 of the Medical Service Act)

Imprisonment with labor for not more than 10 years or a fine of not more than 100 million won

Medical practitioner who conspired with the office manager and lent their name

(Article 87-2 of the Medical Service Act)

Imprisonment with labor for not more than 5 years or a fine of not more than 50 million won, together with a disposition suspending qualifications

Violation of Medical Record Management

A medical record is an important document that records and stores the contents of a patient's treatment.

Falsely preparing a medical record, or failing to manage and store it according to statutory standards, constitutes a violation of the Medical Service Act.

▶ Article 88 of the Medical Service Act (Penalty Provisions)

False preparation and modification of a medical record

Imprisonment for up to 3 years or a fine of up to 30 million won

3. Violation of the Medical Service Act | Administrative Disposition

Level of punishment for a Medical Service Act violation

In the event of a violation of the Medical Service Act, the Minister of Health and Welfare may, depending on the nature and degree of the violation, impose a license suspension or license revocation on the medical practitioner.

Such a disposition is a measure that directly affects the maintenance of the medical practitioner's license and the operation of the medical institution itself, so a prompt and strategic response may be needed from the early stage.

License Suspension and Revocation Dispositions

Pursuant to Articles 65 and 66 of the Medical Service Act, where the following grounds exist, the Minister of Health and Welfare may suspend or revoke a license.

▶ Examples of grounds for a license suspension disposition

• Conduct damaging dignity

• Preparing a false medical certificate

• Falsely claiming medical fees

• Employing an unqualified person and performing medical practice

▶ Examples of grounds for a license revocation disposition

• Performing medical practice during a period of suspension of qualifications

• Lending a license

• Unlicensed establishment (office-manager hospital)

• Acquiring a license by false or improper means

If such a disposition is received, the person becomes unable to perform medical practice for a certain period, and in serious matters, the person may permanently lose their qualification as a medical practitioner.

Cases Where Relief May Be Available

Even where an administrative disposition is imposed, relief may be available under certain conditions if the following grounds exist.

▶ Conditions for possible reissuance

• Where the grounds for the violation have been resolved, or there is clear evidence of repentance

• Where the person has completed an education program designated by the Minister of Health and Welfare
(Education content: understanding of patient rights, the role and ethics of medical practitioners, understanding of medical-related statutes, and the like)

• Education hours: at least 40 hours

※ Regulations on completing the education

The Minister of Health and Welfare requires completion of an education program under the Enforcement Rules of the Medical Service Act before reissuing a license, and a person who completes the education must obtain a certificate of completion.

This program is conducted at designated institutions such as the Korea Human Resource Development Institute for Health and Welfare and the various medical associations.

Mitigation or Exemption of a License Suspension Disposition

Where a person voluntarily reports a violation of the Medical Service Act, the disposition suspending the license may be mitigated or exempted.

The actual level of the disposition may vary depending on the discretion of the Ministry of Health and Welfare or the judgment of the administrative appeals commission, so it is very important to prepare the procedures for stating opinions and raising objections diligently.

4. Violation of the Medical Service Act | Methods of Response

If a person has received criminal punishment or an administrative disposition for a violation of the Medical Service Act, this can have a significant impact on the medical practitioner's qualifications and reputation, as well as on the operation of the medical institution.

Therefore, establishing an appropriate strategy and responding from the initial stage is of the greatest importance.

Responding to a Police Investigation

When a matter involving a violation of the Medical Service Act is received by an investigative agency, the person undergoes police investigation in the capacity of a suspect or a witness.

At this point, the content of the statements directly affects the decision on whether to indict and the level of administrative disposition, so a careful approach is needed.

① Organizing the Facts

It is advisable to organize in advance the course of one's own medical practice and the related records (medical records, internal regulations of the medical institution, and the like).

② Maintaining Consistent Answers Even to Repeated Questions

A method of confirming points of suspicion by repeating the same question is frequently used, so one must respond with a consistent attitude in order not to lose credibility.

③ Maintaining Composure Even Under the Investigator's Pressure

Even when the investigator questions in a strong tone or tries to lead the answers, one should take care not to become agitated or to make unnecessary statements.

④ Preparing Materials for Submission and Explanation

Through objective materials such as medical records, relevant guidelines, and internal reports, one must establish the justification for the alleged violation or the absence of intent or negligence.

Administrative Appeal and Administrative Litigation

If a disposition arising from a violation of the Medical Service Act is considered unjust, it may be contested through the following legal remedy procedures.

▶ Administrative adjudication

Where a party does not accept a disposition, a request for adjudication may be filed with bodies such as the Central Administrative Adjudication Commission, and this procedure has the advantage of being relatively simple and involving a low cost burden.

Administrative adjudication must be requested within 90 days from the date on which the party became aware that the disposition had been made, or within 180 days from the date on which the disposition was made.

▶ Administrative litigation

A party may either not accept the result of administrative adjudication, or file administrative litigation directly without going through administrative adjudication.

The court determines whether the disposition is illegal, and the litigation must be filed within 90 days from the date on which the party became aware that the disposition or similar action had been made.

5. Violation of the Medical Service Act | Need for Legal Assistance

Matters of assistance by Daeryun Law concerning violation of the Medical Service Act

A violation of the Medical Service Act can arise even from a simple mistake or error, but once a disposition is issued, it can have a critical effect on the medical professional's qualifications and career, as well as on the trust placed in the medical institution.

In particular, the procedures ranging from the investigation by the investigative agency, to the administrative disposition by the Ministry of Health and Welfare, and then to administrative adjudication and litigation are each a complex process that calls for a high level of legal interpretation and strategy.

In such situations, it is important to accurately interpret the relevant statutes and precedents and to establish an effective response.

Based on practical experience and expertise in cases involving violations of the Medical Service Act, our firm accurately analyzes the client's situation and establishes a tailored response strategy suited to the characteristics of the case.

Working closely with attorneys experienced in criminal and administrative matters, the firm provides systematic legal support stage by stage, from the police investigation stage through to the administrative procedures.

If you are involved in a case concerning a violation of the Medical Service Act and need legal assistance, please consider establishing a response strategy with a 🔗medical specialist attorney.

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