Monday, 2 February 2015

[Straits Times] Make private hospital bills more transparent

IT CONTINUES to puzzle me as to why the Ministry of Health (MOH) insists that private hospital charges should not be under its purview, even though health care is an essential service ("Private hospital charges not under MOH's purview"; Aug 26, 2014).

In spite of this contention, MOH could still keep a closer eye on marketing gimmicks and misleading advertisements by private hospitals, which promote fixed-price surgical packages with claims of giving patients more certainty in their final bill, in view of the vast cost variations seen now.

MOH figures show that the median price for a breast lump removal for private patients can range from as low as $1,971 at Changi General Hospital to a staggering $11,857 at Mount Elizabeth Novena Hospital ("Mt Elizabeth Hospital sets fixed surgery prices"; Nov 25, 2014). Mount Elizabeth Hospital says its fixed-price package will cost only $5,400.

The problem with these fixed-price packages is that the devil is in the details.

The bundled price comprises the operating theatre charges, surgeon's fees and only standard consumable items. Room or ward charges are usually not included.

The published fixed price is no longer valid if the operation runs into complications, which is almost always not the fault of the patient.

There is also an exclusion list which contains many items that surgeons may require for any procedure that is less than straightforward.

The fixing of surgical package prices is just another marketing strategy to attract more patients to utilise the hospital's services.

Many will find themselves eventually paying above and beyond the published prices owing to "complications", utilising items not listed under standard consumables or in the exclusion list, and perhaps, an additional day's stay because the patient is deemed unfit for discharge by the doctor.

Private hospital prices are largely unknown to the customer before admission, when only an estimate of the final bill is given.

Patients usually pay medical fees without suspecting that they may be overcharged, as it is difficult to decipher or verify complex hospital bills.

Bundled pricing only gives them the impression that there is certainty in their final bill.

Edmund Khoo Kim Hock