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,

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”.

This entry was posted in HEALTHCARE. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s