AN ECONOMIC ANALYSIS OF THE MEDICAL BENEFITS PROVIDED BY SELECTED HOSPITALS IN SINGAPORE

Abstract

This exercise is an economic analysis of the medical benefits provided by selected hospitals to their employees in Singapore. Medical benefits can be broadly divided into out-patient, hospitalisation, dental and all other benefits that are provided to maintain and improve employees’ health status. However, the provision of work-related medical benefits is excluded. It is important to distinguish the two as about 68% of the employees in the hospitals are in the nursing profession and its support services where they are given some additional medical benefits due to the risk involved in their vocations. It is the objective of the study to include as many hospitals in Singapore as possible so that a more independent and balanced analysis can be made. However, not all hospitals were willing to participate in the study. Thus, only 7 hospitals (out of 20) are included in the study. These comprises 2 government hospitals, 2 government restructured hospitals and 3 private hospitals. Due to the large number of issues that are important in the realm of health and medical care, this study can only seek to analyse selected issues which are considered to be pertinent. They are: 1)the factors that determine and shape the provision of each hospital and variations amongst hospitals; 2)the financing of these provisions; 3)the tax treatment of these provisions and 4)the impact of trade unions on these provisions. All these issues are analysed on the basis of published materials and information generated by interviews with the hospitals but there are still data gaps that prevented a more rigorous and in-depth analysis. It is apparent from the findings that the existing provisions by hospitals are geared towards curative benefits with little emphasis being placed on the preventive aspects. This is not a viable provision of medical benefits for the immediate future especially with the rising cost in health and medical care. It is therefore the view of this study that the trend for future provision should be: 1)geared more towards the preventive aspects; 2)a more comprehensive coverage for catastrophic and prolonged illnesses should be provided while making employees responsible for their basic medical care needs and 3)by formulating a general 'Wellness' programme to encourage employees' participation in maintaining their own fitness. Although these are not sufficient measures to tackle the rising cost of health and medical care, they will contribute towards moulding a fit and healthy workforce in the hospitals and reducing the cost of provision of medical benefits by hospitals. In this context, hospitals have a vital role to play in the field of containing cost since they are the prime providers of primary and secondary health and medical care in Singapore.