Health Minister Khaw Boon Wan revealed this in his written response on Friday to a question from Marine Parade GRC MP Fatimah Lateef, who had asked for the average total arrears incurred by these hospitals in the last two years, and the amount they had to write off.

Restructured hospitals are run as private companies wholly owned by the Government.

They differ from private hospitals in that they receive an annual Government subsidy for the provision of subsidised medical services.

Such hospitals include Singapore General Hospital and Tan Tock Seng Hospital.

Mr Khaw said the vast majority, or 96 per cent, of restructured hospital patients settled their bills within two months of discharge, but arrears that exceeded two months averaged about $73 million a year in 2005 and 2006.

'Some arrears become bad debts after many repeated attempts to recover them and have to be written off,' he added.

'Not all such cases are due to financial difficulty as hospitals have schemes to assist the needy.

Some are foreign workers involved in industrial accidents.

Some are employees of companies, some of which have wound up.'

'As bad debts are eventually borne by Singaporeans, the hospitals do their best to minimise them.'

Mr Khaw said the write-offs amounted to $11 million in 2006.

He added that restructured hospitals provide various forms of financial assistance for patients who have difficulties paying their medical bills, including payment through installments.

Those who are needy are assisted through Medifund.