Cha hospitals raided over rebates

By Korea Herald
  • Published : May 8, 2012 - 19:21
  • Updated : May 8, 2012 - 19:21
Police recently raided hospitals affiliated to Cha Group, a leading medical service and research concern, on suspicions that some of its workers received illegal rebates from a pharmaceutical company.

Officers at Gyeonggi Metropolitan Police Station said Tuesday that they have searched the hospital giant’s offices in Seoul as well as Bundang and Pocheon, Gyeonggi Province last Wednesday.

They also raided the office of a pharmaceutical company which holds contracts for nearly half of the drugs used at the hospital’s high-end health care center and medical centers. The officers have reportedly secured documents that could prove illicit relations between hospital management and the supplier and are comparing the account records of the two.

The investigators said the some high-ranking officials of the hospital have long been using the supplier’s luxurious cars and have allegedly been treated with lavishing wining and dining sessions. Police suspect that the entertainment was part of illegal rebates made in exchange for buying or prescribing its products. They are planning to summon those suspected.

Officers are also studying whether its parent organization, Cha Group ― famous for its of research centers, clinics, hospitals and other institutions in the areas of obstetrics and gynecology nationwide ― have created slush fund.

The group admitted to having been raided but refused to elaborate, adding that it is waiting for all things to be settled.

By Bae Ji-sook (