ARREARS INCURRED BY RESTRUCTURED HOSPITALS

ARREARS INCURRED BY RESTRUCTURED HOSPITALS

6.

Dr Fatimah Lateef asked the Minister for Health (a) what is the average total arrears incurred by restructured hospitals annually over the last two years; and (b) on average, how much of these does the Ministry have to write-off, and whether they are usually related to financial difficulties, regular attendees with social problems or other causes.

Mr Khaw Boon Wan: The vast majority (more than 96%) of restructured hospital patients settle their bills promptly, within two months of discharge. Over the past two years (2005 and 2006), hospital arrears that exceeded two months averaged about $73 million per year.

The hospitals provide various forms of financial assistance for patients who have difficulties paying their medical bills, including payment through instalments. Those who are needy are assisted through Medifund.

Some arrears become bad debts after many repeated attempts to recover them and have to be written off. Not all such cases are due to financial difficulty as hospitals have schemes to assist the needy. Some are foreign workers involved in industrial accidents. Some are employees of companies, some of which have wound up. As bad debts are eventually borne by Singaporeans, the hospitals do their best to minimise them.

In 2006, the write-offs amounted to $11 million.