The government is currently reviewing the Healthcare Financing Framework, and one key area it is looking at is how to help people manage the cash component they pay for healthcare.
Health Minister Gan Kim Yong said one way is to ensure "right sitting", so that patients are not warded if they do not need to be.
Mr Gan was speaking to reporters at an Our Singapore Conversation dialogue for health, organised by Chinese daily Lianhe Zaobao on Sunday.
"We want to see how we can design the cash component, so it will always be affordable, depending on your income level, depending on your conditions and depending on the setting that you go to," said Mr Gan.
"If you can be cared for in a lower cost environment like nursing homes, then there's no need to go to the hospital...by doing all this we will then be able to keep the cost low, and keep the cash component more affordable."