Pharma industry sees unexpected influx from resigned trainee doctors < Policy < Article

Korea is grappling with a severe healthcare crisis as hundreds of trainee doctors resigned en masse to protest the government’s plan to increase medical school admissions.

The government’s policy, aimed at addressing the country’s doctor shortage particularly in rural areas, has sparked fierce opposition from the medical community. The conflict has led to widespread walkouts of trainee physicians, leaving hospitals understaffed and causing significant disruptions in medical services nationwide.

Most recently, the government’s attempts to mitigate the crisis by extending residency application schedules and recruiting additional staff have largely failed. Most teaching hospitals reported only one or two applicants for their residency programs, signaling a potential long-term impact on the country’s healthcare system.

While the residency program sign-up fell short, the Ministry of Health and Welfare reported that 971 former residents had found employment in various medical institutions as of Aug. 12, a significant increase from 625 just a week earlier. Notably, 58 percent have moved to smaller clinics, creating intense competition among themselves for employment opportunities.

This sudden influx is particularly affecting popular specialties such as dermatology and plastic surgery, which are already showing signs of saturation.

However, a new trend is also emerging, with some former residents exploring opportunities in the pharmaceutical and biotech industries.

Major Korean pharmaceutical companies such as Celltrion, Yuhan Corp., Daewoong Pharmaceutical, Chong Kun Dang, and Hanmi Pharma have been actively recruiting medical professionals for various departments.

Multinational pharmaceutical companies also have a long-standing history of employing medical professionals.

These companies have traditionally sought experienced physicians for roles in medical affairs, clinical research, and regulatory affairs, valuing their deep understanding of healthcare practices and medical needs.

Their focus has typically been on recruiting seasoned medical professionals rather than recent graduates or residents.

However, in light of the current situation, the bio-pharma industry is seeing an influx of applications from residents, not only for medical affairs positions but also for general sales and public relations roles.

“We’re seeing a surprising trend in our applicant pool,” a multinational pharmaceutical company human resources representative told Korea Biomedical Review asking to remain anonymous. “Former residents are applying not only for our medical affairs positions, which is somewhat expected, but also for roles in general sales and even public relations.”

Another source in the medical device sector also pointed out that a trainee doctor who recently resigned had also applied for their sales team.

“This was the first case that a doctor applied for such a position as most doctors usually apply for medical affairs department or higher management position roles,” she said. “It’s a significant difference from our usual applicant demographics.”

Industry opinions on this trend are mixed.

“While we appreciate the medical knowledge these residents bring, we’re uncertain about their ability to adapt to corporate environments outside of medical affairs,” an official at a Korean pharmaceutical company  said. “The pharmaceutical industry operates differently from hospitals, and it may be a challenging adjustment for them.”

However, others saw potential benefits.

“Although they’ll need to learn the ropes of the corporate world, their specialized medical knowledge gives them a head start,” another official said. “We believe they can adapt quickly and bring valuable insights to various departments, potentially accelerating our processes and improving our products.”

Meanwhile, the government’s last-ditch effort to resolve the crisis through extended recruitment period for medical residents has fallen drastically short.

The Ministry of Health and Welfare announced on Monday that only 21 applicants came forward during the extended recruitment period from Aug. 9 to last Friday. This included 4 interns and 17 residents, with only seven applying to the prestigious “Big 5” hospitals – Seoul National University Hospital, Severance Hospital, Samsung Medical Center, Asan Medical Center, Seoul St. Mary’s Hospital.

When combined with the 104 applicants from the initial recruitment drive in July, the total number of applicants stands at a mere 125. This represents a staggeringly low application rate of 1.6 percent, based on the 7,645 positions available as of July.

Given that the second-half year residency training is set to begin in September, further extensions to the recruitment period are essentially impossible. Training hospitals are now expected to conduct interviews and complete their selection processes this month, aiming to commence the training on Sept. 1

“While the mass resignation of residents is undoubtedly causing significant disruptions in the healthcare system, it’s also inadvertently expanding the pool of specialized talent in the broader healthcare sector,” a biopharmaceutical executive said. “This could potentially drive innovation and improve collaboration between medical practice and industry.”

However, as the current medical staff shortage is also affecting the healthcare industry in terms of sales and running clinical trials, the overall perspective in the industry is that it is a concerning development that may have long-term implications for both healthcare delivery and the career prospects of these young doctors, he added.