Public healthcare institutions operate on non-profit basis

MOH’s Reply:

The Straits Times, 24 Mar 2017

We refer to the two letters by Mr David Soh (“Do public hospitals profit from medical procedures done?” ST, Mar 11; “Health Ministry should step in to regulate costs”, ST Online, Mar 17).

Our public healthcare institutions (PHIs) operate on a non-profit basis. Where margins are applied, these are used to cover manpower, operations and maintenance and overhead costs associated with the provision of specific services, drugs, and investigations.  

Revenue from patients alone are not enough to cover costs. PHIs require substantial funding from the government in order to provide subsidised care to patients. In financial year 2015, government funding to PHIs amounted to $4.3 billion. 

MOH agrees that fee publication improves price transparency and helps patients make better-informed healthcare decisions. As most patients are concerned with the total cost of treatments, MOH has been publishing “Total Hospital Bills” sizes for 80 common conditions (covering more than 60% of cases) at both public and private hospitals. MOH has also published “Total Operation Fees” in both public and private hospitals. These are broken down into about 140 common procedures (which account for almost 80% of all procedures).

The “Total Hospital Bills” and “Total Operation Fees” for common conditions and procedures can be found at: https://www.moh.gov.sg/content/moh_web/home/costs_and_financing/hospital-charges.html. MOH will continue to review and make improvements in the publication of medical fees. 

Lim Bee Khim
Director, Corporate Communications
Ministry of Health

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Forum Letter

The Straits Times, 11 Mar 2017

Do public hospitals profit from medical procedures done?

While public healthcare institutions do not make a profit on the drugs they prescribe, could the Health Ministry clarify if this also applies to the medical procedures carried out in the hospitals (No profit margins on drugs sold in public hospitals: Gan; March 10)?

For example, I understand that a positron emission tomography (PET) scan at Singapore General Hospital would cost a non-subsidised patient around $3,000, whereas undergoing one in a private hospital costs about $1,600.

Maybe it is time for the MOH to compile a list of the non-subsidised cost of procedures - CT scans, MRIs and so on - and publish it on its website for patients to compare.

David Soh Poh Huat

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Forum Letter

The Straits Times Online, 17 Mar 2017

Health Ministry should step in to regulate costs

Singapore is already well known for being one of the most expensive countries in the world to live in.

More and more, I am hearing that we are also a very expensive country to seek medical treatment in.

With Singapore aiming to be a medical hub, shouldn't this be a cause for concern?

Maybe it is time for the Health Ministry, besides regulating its own medical procedural costs, to start compiling a list of "key treatment" costs in the main private hospitals.

We have top-class medical services here but if we do not keep the high costs in check, we can expect patients to start going elsewhere, like Malaysia and Thailand.

There is no point building more medical hubs when the main costs of treatment are not regulated.

David Soh Poh Huat