Government set to release land in the east for not-for-profit private hospital: Ong Ye Kung

In a few years' time, the eastern part of Singapore may get a new private hospital — the first in nearly two decades — if the Government goes ahead with plans to release a plot of land there.

This was announced by Coordinating Minister for Social Policies Ong Ye Kung at Mount Alvernia Hospital's 65th anniversary celebrations on Thursday (April 9), which also saw the private hospital officially open its day surgery centre, an upgraded intensive care unit and high dependency unit.

Citing the example of Mount Alvernia Hospital at Thomson Road, Ong, who is also Minister for Health, said the Government encourages the establishment of lower-cost private hospitals, as they can exert competitive pressures on public hospitals to benefit the Singapore population.

"But we only have one Mount Alvernia, and we wish for more private hospitals like you. 

"That is why I had earlier announced the Ministry of Health's (MOH) plans to establish a new not-for-profit private acute hospital to provide another lower-cost private healthcare option," he said.

Ong added that the private hospital will be sited in the eastern region, the first land release for private hospitals in almost two decades, if the Government goes ahead with the plan.

When completed, it is expected to have between 300 to 400 hospital beds.

Bids to be assessed on healthcare affordability policies

To keep to its intention of smoothening the cost curve for Singaporeans, Ong said the Government intends to impose bill size restrictions on the winning bidder.

This means that the new private hospital cannot lead the market in terms of its pricing, and its bills will be capped at a certain percentile of the market to be defined.

MOH is also considering to adopt a fixed-price land tender approach, where bidders are not assessed based on how much they are prepared to pay for the land, but other qualitative factors, such as care model, cost efficiency, approach to recruiting and developing manpower, and their commitment and policies towards affordable healthcare.

Ong said the ministry has been consulting stakeholders on the not-for-profit hospital, adding that "a few important issues" will need to be addressed, before a decision is made in the second half of this year, to launch the tender.

Continued role for private hospitals in healthcare 

Turning to the role of private healthcare services, amid an increase in both the Government's healthcare expenditure and number of hospitals, the minister said private healthcare has "always played an important role" in Singapore's healthcare landscape, and remains an "integral" part of the ecosystem.

He pointed to how most of the nearly 50 per cent of accredited family physicians in private practice have joined national schemes such as the Community Health Assist Scheme and Healthier SG.

Ong also noted that generous insurance riders, purportedly offering "total peace of mind", have fuelled rises in private hospital costs, geared towards high-end care.

Since April 1, new riders sold will no longer be allowed to cover the minimum deductible which patients have to pay before insurance kicks in.

This aims to curb the tendency for people to "use more than what is necessary", and providers "serving more than necessary".

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