Governance of private primary care and Third Party Administrators

Name and Constituency of Member of Parliament
Assoc Prof Daniel Goh Pei Siong
Non-Constituency MP

Question No. 1076

To ask the Minister for Health (a) what powers does the Ministry have to ensure good governance at private clinic groups to prevent the disruption of primary care services, and (b) whether the payment of medical claims by third party administrators to private clinics should be regulated to safeguard the financial viability of private clinics.

Oral Answer

1    Under the Private Hospitals and Medical Clinics Act (PHMCA), the Ministry regulates clinics to ensure that they provide a safe and good standard of care to their patients.  This includes the continuity of care for patients. 

2    Where a licensed operator intends to cease operating, or let, sell or in any way dispose of its medical clinic, it is required to notify MOH of his intention in writing not less than 30 days before he takes such an action.  In order to ensure continuity of care for the clinic’s patients, the operator must properly transfer its patients’ medical information to another licensed clinic of the patients’ choice. 

3    Third Party Administrators (TPAs) provide a range of intermediary services to healthcare providers, such as helping them participate in employer medical benefit programmes, processing of medical claims and concierge services.  These are private contractual arrangements between the TPA and healthcare providers which MOH does not directly intervene in.  However, the Singapore Medical Council (SMC) has provided guidance to doctors on appropriate fee arrangements through its Ethical Code and Ethical Guidelines (ECEG) that emphasises on the ethical practice and appropriate care so that the well-being of the patient will not be compromised.