Private hospital fee benchmarks: Will more transparency lower healthcare bills?

Mr Siow disagreed that quality would necessarily suffer, arguing that price pressure typically drives operational efficiencies, tougher supplier negotiations and switches to clinically equivalent alternatives rather than compromising care.

“Clinicians and hospitals should still retain the flexibility to use a higher-cost product if it results in better patient outcomes,” he added.

IMPLEMENTATION CHALLENGES

Those interviewed by CNA agreed that establishing comprehensive benchmarks will be complex and resource-intensive.

“Authorities will need high-quality, granular data adjusted for case mix, ward class and facility type, plus unambiguous definitions so like-for-like costs are compared,” said Mr Siow.

Ms Law identified communication and consistent implementation across private hospitals as key challenges.

Mr Siow also stressed that benchmarks must be regularly updated to reflect inflation and changes in medical practice, and warned against applying them too rigidly.

If benchmark ranges do not fully account for differences in care settings or patient acuity, comparisons become misleading, he said. For instance, items used in an ICU with higher staffing ratios and equipment intensity naturally cost more than the same items in a general ward.

Benchmarks could also be misread as price caps and create friction when legitimate clinical variation pushes costs outside the range, Mr Siow said.

“These are manageable risks, but they call (for) transparent communication, thoughtful design and clear guidance from authorities.”

IHH Healthcare Singapore, the country’s largest private healthcare provider, expressed support for the initiative.

Chief executive Peter Chow said additional benchmark data on hospital fees would provide “a more comprehensive view” alongside existing data on professional fees and help ensure healthcare cost sustainability.

Raffles Hospital called the move a “positive step that builds on ongoing fee benchmarking efforts”.

“We do not foresee any major challenges in its implementation and will be fully supportive,” said its general manager Tan Hsiang Lung. He added that the hospital already operates on a group practice model where specialists and units adhere to internal fee guidelines aligned with MOH benchmarks.