Public healthcare institutions operate on non-profit basis

We refer to the two letters by Mr David Soh Poh Huat (Do public hospitals profit from medical procedures done?; March 11, and Health Ministry should step in to regulate costs; Forum Online, March 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 is 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 per cent 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 per cent 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

A version of this article appeared in the print edition of The Straits Times on March 24, 2017, with the headline 'Public healthcare institutions operate on non-profit basis'. Print Edition | Subscribe