How much margin markup % on drugs in public hospitals?


Do public hospitals profit from medical procedures done?

I refer to David Soh Poh Huat’s letter “Do public hospitals profit from medical procedures done?” (Straits Times, Mar 11).

Do not profit on drugs

It states that “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)?

Procedure costs $3,000 at SGH vs $1,600 at private hospital

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.”

Markup % on overheads & operations’ costs?

What is the percentage margin markup of drugs for overheads and operations’ costs?

What are overheads & operations’ costs?

What exactly are the overheads and operations’ costs? – Salaries, rent, utilities, logistics, etc?

Mark up % on medical procedures?

By the same token – what is the percentage markup (if any) on medical procedures – since a positron emission tomography (PET) scan at the Singapore General Hospital may cost a non-subsidised patient 87.5 per cent more than ($3,000 divided by $1,600) a private hospital?

Public healthcare spending + Medisave top-ups + Medisave withdrawals = $13.2b?

In this connection, since total public healthcare spending, Medisave top-ups and total withdrawals from Medisave, were about $13.2 billion ($9.8 + $3.4 billion)

Medisave contributions + annual % on Medisave accounts’ balances = $13.2b?

  • – and the estimated annual Medisave contributions plus the annual interest on Medisave accounts’ balances is at least $13.3 billion

Cashflow perspective – Govt not be spending a single cent on healthcare?

  • – from a cashflow perspective – does it mean that the Government may still not be spending a single cent on healthcare. if annual inflows exceed outflows ($13.3 billion – $13.2 billion)?

Leong Sze Hian

About the Author

Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.