Advisory Case on Reviewing Commission Rates for Attracting Foreign Patients and Managing Contractual Risk

1. The Client's Situation

While carrying out the business of attracting foreign patients, the client sought to confirm whether the fee structure of its existing contract concluded with a medical institution conformed to the scope set by the relevant statutes and the public notice of the Ministry of Health and Welfare. In addition, considering the possibility that the medical institution might in the future demand an adjustment of the fee rate or termination of the contract, the client needed to prepare a response rationale. Furthermore, it was unclear whether, where an attracted patient repeatedly used the same medical institution, those medical expenses would also be included as subject to settlement, leaving room for future disputes.

Your Legal Team reviewed the special act and public notice provisions regarding fees for attracting foreign patients, and explained that the maximum permissible fee rate differs depending on the type of medical institution, and that agreements exceeding it carry the risk of being void or sanctioned. However, we clearly advised that where the contractual fee rate falls within the scope of the public notice, there is no legal basis requiring the client to comply even if the medical institution unilaterally demands a reduction. We also reviewed that termination of a contract solely on the ground of the fee rate is recognized only restrictively, organizing the rationale so that the client could respond to excessive demands for termination. Finally, we proposed a revised clause clearly stipulating whether the medical expenses from an attracted patient's revisit are included as subject to settlement, supplementing the wording so as to reduce the possibility of future settlement disputes.

By clearly confirming whether the fee structure conformed to the applicable statutes and public notice, the client secured stability in operating the contract. The client also came to be equipped with a response rationale in preparation for the case where the medical institution unilaterally demands a reduction or termination, and as the scope of settlement for revisit medical expenses became clear, the risk of unnecessary future disputes decreased. Through this, the client laid the groundwork to manage its foreign-patient attraction contracts more stably and predictably.