GOVERNMENT HOSPITAL AND OUTPATIENT CHARGES

Dr Ker Sin Tze asked the Minister for Health whether he will allow the withdrawal of funds from Medisave account for paying the delivery cost of the fourth child.

Mr Lim Hng Kiang: Medisave is primarily intended for inpatient hospitalisation expenses. For maternity purposes, Medisave may be used for the delivery of a woman's first three children. This is in line with the national population policy of encouraging couples to have three or more children only if they can afford it. Couples who decide to have a fourth child or more must rely on their own finances rather than on Medisave to pay for the delivery expenses.

Mr Low Thia Khiang asked the Minister for Health what is the rationale for the recent increases in Government hospital and outpatient charges and its impact on those who need long-term medical treatment and medication.

Mr Lim Hng Kiang: My Ministry is aware of the impact of rising health care cost to the public. Therefore, fees and charges are reviewed regularly to ensure that fee increases, if need be, are minimised.

The last fee revision was more than 21/2 years ago. As a result of the economic crisis, Government hospitals and polyclinics refrained from revising their fees last year. However, with the recovery of our economy this year, there is a need to revise the fees to recover part of the cost increases.

Hospitals and polyclinics need to revise their fees regularly to keep up with the increase in their running cost. The increase in running cost is in part due to the rise in manpower cost, which is the single largest cost component at 60% of total running cost. To keep pace with advances in medical technology, the cost of medical supplies such as drugs, which account for another 15% of the total running cost, will also rise. The cost of replacing medical equipment, utilities, etc. will also add to the increase in hospitals' running cost.

It is therefore unrealistic to expect our hospitals and polyclinics not to increase their fees and charges. Singaporeans should therefore expect such regular fee revisions.

The Government will, however, continue to bear the major responsibility in absorbing the increase in health care costs for subsidised patients. Basic medical care in the class B2 and C wards of the public sector hospitals and outpatient clinics will continue to be heavily subsidised, and remain affordable to the lower income group. Those who are unable to pay even the heavily subsidised rate can apply for Medifund help at hospitals or waiver of charges at the polyclinics.