High overheads and costs of corporatised public hospitals recovered from patients

(This post is a slightly-edited comment explaining the high overheads and costs of restructured hospitals)

I suspect the margin for “overheads and operations” are very high.

This is the main problem with the restructuring & corporatizing of Singapore’s public hospitals since 1990.

By being corporatized, the management of the restructured hospitals are incentivized to:
– hire expensive doctors,
– increase salaries for the higher-level staff,
– buy expensive equipment, build expensive medical & specialist centres,
– have expensive building renovations,
etc

Hospitals then pass on the costs to patients & their families on a cost-recovery basis.

CEOs of the restructured hospitals & CEOs of the healthcare clusters e.g. SingHealth, NHG, Alexandria Health, Eastern Alliance etc etc KNOW that their KPIs DO NOT depend on merely providing low-cost basic healthcare to public earning $2K or less per month.

Their KPIs, performance gradings and careers get more bang for the buck by engaging in high-profile but expensive medical “show biz”.

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