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Higher benchmark rates positive for healthcare service providers amid high inflation and increase in labour costs

Khairani Afifi Noordin
Khairani Afifi Noordin • 4 min read
Higher benchmark rates positive for healthcare service providers amid high inflation and increase in labour costs
The analysts expect longer term margins can be sustained following the MOH's updated benchmarks.
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The Ministry of Health’s (MOH) new and updated fee benchmarks should help private healthcare service providers cope with high inflation as well as increase in labour costs especially amid the shortage of nurses, says DBS Group Research analyst Rachel Tan.

On June 16, the MOH released new fee benchmarks for certain types of hospital stays and surgical procedures, aside from updating existing benchmarks to factor in inflation. The benchmarks serve as a reasonable guideline of fees that patients and insurers could expect to pay and serve as a reference for doctors and hospitals in setting their fees.

The ministry first introduced this in 2018 for 200 common surgical procedures, covering 85% of surgical cases in the private sector. Subsequently, in 2020, the MOH expanded the list to include anaesthetist fees and doctors’ inpatient attendance fees.

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