By Kim Sung-jin
Staff Reporter
The Free Economic Zone (FEZ) Planning Office has designated New York-Presbyterian Hospital (NYP) as the preferred bidder to be a foreign partner in setting up and operating an international hospital in Songdo International City.
However, NYP’s rival bidder, the Philadelphia International Medicine (PIM), strongly appealed against the FEZ Planning Office’s decision, threatening to take the matter to the court.
``The Ministry of Finance and Economy (MOFE) arbitrarily formed an assessment committee consisting of seven private experts two weeks ago without any notice, and informed us that it would choose the preferred bidder according to the result of voting,’’ said a PIM representative. The MOFE controls the FEZ Planning office.
``PIM won the vote by four to three. The principal factor determining the preferred bidder according to the MOFE’s request was attracting foreign direct investment for the Songdo international hospital. PIM attracted more than 51 percent, or $160 million, in foreign investment, more than what the ministry demanded,’’ he claimed.
The MOFE, which earlier in the day said NYP was selected over PIM for the Songdo project, denied PIM’s assertion, saying that the assessment committee consist of 10 officials from both government and private professional. It said NYP won by winning six votes.
Songdo is part of Inchon, west of Seoul, which is home to one of Korea’s FEZs.
``The assessment committee chose NYP after reviewing the on-site inspection results and two bidders’ business plans,’’ said Woo Ki-jong, MOFE director general of Planning Bureau. The committee is composed of representatives from the MOFE, the Ministry of Health and Welfare and the Inchon FEZ Authority.
``NYP has a good international reputation for having talented, dedicated physicians and state-of-the-art technology. U.S. News & World Report 2005 ranked NYP as the seventh best comprehensive hospital in the U.S.,’’ Woo said.
NYP is composed of two renowned medical centers _ NYP/Columbia University Medical Center and NYP/Weill Cornell Medical Center. It is also affiliated with two Ivy League medical institutions: Columbia University College of Physicians & Surgeons and Weill Medical College of Cornell University.
``NYP suggested the provision of physicians and surgeons only from NYP/Weill Cornell Medical Center, but the MOFE will continue to negotiate with NYP to have medical doctors from Columbia University included as well,’’ Woo said.
NYP tentatively agreed to provide more than 10 percent of the total physicians and surgeons working at the Songdo international hospital, he said.
The MOFE has not yet decided on the Korean partner that will co-operate the Songdo international hospital, but is planning to pick one by mid-2006.
The ministry plans to build a 600-bed, one-bed-per-room hospital building for the proposed Songdo international hospital by 2008. Woo said the hospital construction cost, including roughly two to three years of initial operating costs, is estimated at $600 million.
``Building the Songdo international hospital will contribute greatly to Korea’s efforts to attract foreign corporations and foreign investment, as it will significantly improve medical service environment for expatriates residing in Korea,’’ Woo said.
The MOFE plans to place no restriction on Korean citizens’ access to Songdo international hospital as the hospital will be operated on a profit basis, the first hospital to do so in Korea.
sjkim@koreatimes.co.kr
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