Fees increase for lower classes in hospitals?

We refer to the article “2 public hospitals, SGH and KTPH, increase fees for emergency services” (Straits Times, Apr 12).

A & E fees increase 9%

It states that “Singapore General Hospital (SGH) increased its fees by 9 per cent in December from $99 to $108, while charges at Khoo Teck Puat Hospital (KTPH) went from $98 to $103 in February.

While both say this was done to cope with rising costs, the new fees make their emergency departments the costliest in the public sector. Alexandra Hospital is the cheapest at $88 among Singapore’s six public general hospitals. MOH declined to reveal which other hospital is looking to charge more.

Subsidised wards’ fees increase by 9%?

In February, KTPH raised the cost of its B2 beds from $65 to $70. The hospital has over 90 per cent occupancy rates, which means patients needing a bed often face a long wait.

Consultation fees for subsidised patients at its specialist outpatient clinics went up from $32 to $35 for the first visit, and $30 to $32 for follow-ups. Fees for private patients were not raised.”

– Why is it that “MOH declined to reveal which other hospital is looking to charge more?”

$10m surplus?

– According to the 2012/13 NHG Corporate Yearbook and Singhealth Annual Report 2012 – their combined total surplus (revenue minus expenditure) for the last financial year was $10 million.

$198m depreciation and amortization?

Their combined total depreciation and amortization was $198 million.

How much were the land costs?

How much of this may be land costs charged to hospitals?

This makes a combined total surplus and depreciation and amortization of $208 million.

Public hospitals make surpluses?

If we do not charge public hospitals high prices for land, and if we operate on a “no surplus” or “no surplus with higher Government funding” basis – would our healthcare costs need to keep increasing?

Are there any countries in the world that operate public hospitals with annual surpluses, or are charged high prices for land?

Healthcare is affordable?

Looking at the above ever rising healthcare costs even for the lowest class of wards and treatment – is it any wonder that some Singaporeans actually decided to die and not seek medical treatment, because of their concerns about their healthcare costs! (“Alternative news in 1 day? (part 67) – Preferred to die because couldn’t afford healthcare?”, Feb 24).

Health index dropped to 59th?

Singapore has also dipped in the health index, from 56th spot last year to 59th this year … high levels of out-of-pocket health expenditure”

Highest share – private healthcare expenditure?

– At about 67% – our private health expenditure is the highest among developed countries.

$1.3b MediShield surpluses last 6 years?

Also, the estimated MediShield surpluses and accumulated interest in the last 6 years is estimated to be about $1.3 billion – meaning that the Government may not have spent a single cent on the MediShield scheme since its inception. (“Alternative news in 1 day? (part 70) – $1.3b MediShield “excess premiums” last 6 years?“, Mar 1)

Healthcare cash flows?

Estimated total annual contributions to Medisave – $8 billion (Total CPF contributions to all accounts (OA, SA and Medisave) in 2013 was $28.53 billion)

Estimated 4.25% interest (4% plus extra 1% on 1st $60,000 of Medisave, Special and Ordinary accounts) on total Medisave accounts’ balance of $65.6 billion – $2.8 billion

Total inflows: $10.8 billion

Government expenditure on healthcare (total operating and development expenditure) – $7.12 billion

Medisave Scheme withdrawals (includes withdrawals for hospitalisations, approved chronic illnesses, ElderShield premiums and Integrated Shield Plans’ premiums) – $1.56 billion

MediShield Scheme (premiums) – $817.6 million

Medifund payouts – $102 million

Pioneer Generation Package 1st year costs – $260 million

Total outflows: $9.76 billion

You can see from the above that total healthcare inflows of $10.8 billion (estimated) exceed the total healthcare outflows of $9.76 billion.

So, from a cashflow perspective – we may not be spending a single cent on healthcare.

Total hospital beds decreased 10% against 1.2m increase in population?

The total number of hospital beds decreased by about 10% against a 1.2 million increase in the population, from 2001 to 2012.

So, in the final analysis – why is there a need to increase Healthcare fees – particularly for the lower class supposedly subsidised fees?

What’s the point of telling Singaporeans repeatedly – that we will spend more on healthcare and that healthcare will be affordable – when despite the subsidies – healthcare fees keep rising at greater than inflation rates, for the lower class wards?

SY Lee and Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as the 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), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.