Affordability of Nursing Homes

Mr Sitoh Yih Pin asked the Minister for Health whether the Ministry has any plans to increase the cost norms for nursing homes now to improve the affordability of nursing homes.

Mr Gan Kim Yong: MOH regularly reviews the healthcare financing framework to ensure the affordability of healthcare services. In July 2012, MOH increased the funding rates for MOH-funded nursing homes. We also raised the qualifying per capita household income to extend Immediate and Long Term Care (ILTC) subsidies to more middle-income households and absorbed GST for all subsidised ILTC patients receiving care at GST-registered ILTC institutions.

From 1 July 2013, we also expanded the Community Silver Trust (CST) to cover long-term care providers' operating expenses. CST is a dollar-for-dollar donation matching grant provided by the Government to MOH-funded Voluntary Welfare Organisations (VWOs) in the ILTC sector. This additional source of funds helps VWO nursing homes defray operating costs to further improve the affordability of nursing home care.

MOH will continue to review funding rates to ensure that ILTC services, including nursing home care, remain cost-effective and affordable.