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	Reimbursement for drug sales even at the cost of collapsing a health care system in South Korea

	한국 의료체계 붕괴 비용을 치른 의약품 판매 보상

	2025년

	Drug Expense, Pharmaceutical Expenditure, Regulatory Capture, Market-based Actual Transaction Price (MATP)

	Jong hoon Lee

	Science and Research Center

	science@research.re.kr

	Aim: The search costs in South Korea were provided to maximize profits by obtaining fierce resistance from pharmaceutical companies to abolish the market-based actual transaction price (MATP) system and purchase professional bureaucrats. Drug expenses are used in law and economic terms, but researchers and bureaucrats in South Korea report pharmaceutical expenditures to citizens. This study aims to review the application of system dynamics modeling to drug expenses and pharmaceutical expenses. Methods: We analyzed Big Five hospitals from 2010~2019 and observed similar scales of private hospitals reporting pharmaceutical expenditures for hospital B and public hospitals reporting drug expenses for hospital E. In Korea's NHIS, pharmaceutical expenditure is the most important source of income, accounting for 1.5 times the drug expense. Results: B dominated the MATP system from 2012~2019. However, from 2015~2019, after the MATP system was abolished, Hospital E's drug expense started to overtake Hospital B's pharmaceutical expenditure in 2019. The former Minister abolished the low-cost purchase incentive to increase the price of generics, which Hospital E received from the MATP system. Moreover, having more doctors should increase the volume of prescriptions with significantly expanded generic reimbursement. Conclusion: Evidence suggests that since January 2014, South Korea's NHIS drug policy may have faced regulatory capture following the abolition of the MATP. This observation is based on changes in policy administration and market practices. To address potential issues, reinstating the MATP for greater flexibility is one proposed solution.

	보건경제와 정책연구 제31권 제2호

	보건경제와 정책연구 제31권 제2호 01 Reimbursement for drug sales even at the cost of collapsing a health care system in South Korea.pdf