Recently, public hospitals and large private hospitals have been actively working to improve management efficiency through the introduction of advanced purchasing agency (GPO) systems, but suspicions have been raised about the background of Bundang Seoul National University Hospital (CEO Lee Chul-hee), a representative general hospital in Korea, which is preparing to build its own purchasing/logistics system. 

◆Confronting the government's policy as an example of lax management of public institutions? Looking at specific savings cases, in the case of insurance items, it has been recognized for its social contribution to stabilizing healthcare finances by purchasing a total of 53 billion won cheaper than the insurance price over the past three years from 2012 to 2014.

With such a successful introduction of an advanced group purchasing organizer (GPO) system, which has been mentioned for rationalizing management and stabilizing healthcare finances, interest is gathering in the background as to why Bundang Seoul National University Hospital is suddenly developing its own system.

General hospital purchasing methods are divided into self-purchasing or entrusting purchases through GPOs, and in the case of GPOs, they are represented by government-operated national marketplaces and private GPO systems. In the case of self-purchase, there is a positive aspect of creating employment and securing its own human resources as it is carried out through the hospital's internal organization, but GPOs are superior in terms of cost savings and work efficiency. In particular, compared to the national market, the service fee paid by hospitals when using private GPOs is more than 50% lower, while the range of services provided is superior, and the effect of improving work efficiency is also known to be high.

According to a hospital procurement/logistics system official, if Bundang Seoul National University Hospital were to establish its own procurement system, it would incur an additional cost of about KRW 1.5 billion every year, including at least five new people in charge of logistics and maintenance of the procurement/logistics system.
In addition, according to a patent infringement opinion from a patent law firm, the procurement/logistics system (GPO) being built by Bundang Seoul National University Hospital as of March this year is almost similar to the system of E Company, which has been used since the opening of the hospital in 2003, which is controversial for possible patent infringement violations.

In fact, the development of the hospital supply procurement system of Bundang Seoul National University Hospital was ordered by EZCareTech, and it is reported that the own procurement and logistics system being built through EZCareTech contains the same services that E Company has been providing and additional functions proposed to improve the service. This is an unauthorized theft of software development encouraged by the government's Ministry of Science, ICT and Future Planning, raising the issue of the morality of public institutions.

According to the 'Request for Bid Proposal' released through the website of Seoul National University Bundang Hospital in August last year, the components of the hospital's procurement system for hospital supplies are mostly consistent with E's system.

Company E has already acquired and registered patents for 'System and method for purchasing and logistics management of hospital supplies' and 'Hospital logistics system and method' in 2009 and 2011, respectively, and has been providing purchasing and logistics services to a number of hospitals, including Seoul National University Bundang Hospital, through its own e-commerce system built on this basis, so it is expected that the patent infringement controversy at Seoul National University Bundang Hospital will not be able to avoid huge ramifications and criticism due to legal disputes.

What's more, EZCareTech, which won the project despite having no track record of building a hospital supply procurement system, outsourced it to a JD I&S program development company composed of former E company developers to develop a copy-level system, and it is reported that it is even being accused of domination by a 'super-sub' public institution.

On the other hand, EasyCareTech was previously sued by the company in May last year for illegal use and export of software owned by SME developer Philanet."

An official from a local hospital software developer said, "If it violated the technology patent, Bundang Seoul National University Hospital is obligated to coexist with small and medium-sized ventures and protect technology as a public institution under the government, but rather, it has shown unfair behavior by mobilizing 'stealing manpower' and 'copying technology' from small and medium-sized enterprises.<"If Bundang Seoul National University Hospital operates its own system, it is expected to inevitably invest billions of won or more every year in initial system construction and subsequent related operating costs, which may be in direct conflict with the government's 'public sector reform' intention to eradicate public institutions' profligate management," he said.

◆Raising criticism of pursuing commercial business rather than focusing on public health care through safe supply of hospital supplies? The problem is that the existing GPO system has already saved KRW 53 billion in healthcare finances over the past three years, so if it abandons the proven equipment and invests a large amount of new money to develop GPO equipment, it may infringe on the technology patents of venture companies as a national university hospital.

In addition, hospitals must have adequate supplies of drugs and supplies for safe treatment of patients and public health. Moreover, in the case of Seoul National University Bundang Hospital, the symbolism and influence of the name of Seoul National University is incomparable to other hospitals. If an error occurs due to insufficient trial operation of the self-developed procurement/logistics system and the hospital is not supplied properly, it may not only cause inconvenience but also threaten the lives of patients and public health.

In this regard, related industries are concerned that the operating policies of public medical institutions, which should be centered on patient care and research, are going too far by focusing on business expansion.

An official from Bundang Seoul National University Hospital said, "We received a patent-related review request letter from Company E on the 15th of this month, and advisory lawyers and officials are reviewing it, and the business model of the original purchasing/logistics system was developed by Professor Imo of Seoul National University, and the information is publicly available, and it is known that other hospitals are already using it." "The initial investment cost for system development is 17 billion won, and related personnel will hire about 5 new employees," he said.

On the other hand, Kim Tae-young, a lawyer at Hanbyul Law Firm, said, "The Supreme Court's judgment standard for technology patent infringement is that if the principle of solving a problem is the same and has substantially the same effect even if there are some changes, there is a high possibility of patent infringement, so it is possible to demand the disposal of the system and the removal of the equipment, as well as to claim damages, and to be punished by imprisonment for up to seven years or a fine of up to 100 million won."

Also, attorney Kim Tae-young said, "Even if it does not constitute patent infringement under the Unfair Competition Prevention Act, if trade secrets are stolen, it constitutes trade secret infringement, and it is possible to request the disposal and removal of the system and claim damages, and it is possible to be imprisoned for up to five years or fined up to 50 million won." 

Health Team Reporter Lee Jae-seung admin369@segye.com