Latest news with #GreatEastern
CNA
12 hours ago
- Business
- CNA
Mount Elizabeth hospitals not always most expensive among private providers, CNA finds
SINGAPORE: Despite its reputation for premium pricing, Mount Elizabeth hospitals do not consistently charge the highest fees among private healthcare providers in Singapore, a CNA review of medical billing data has found. Based on typical bills for 10 common medical procedures listed on the Ministry of Health's (MOH) cost comparison portal, Mount Elizabeth topped the list in only three cases. The "typical bill" refers to the median cost paid by patients in 2023. While Mount Alvernia Hospital was found to be cheaper in some instances, it was excluded from CNA's comparison as it operates as a not-for-profit institution. In the three cases where Mount Elizabeth was most expensive, Mount Elizabeth Novena charged 5.1 per cent more for a knee arthroscopy, 11.3 per cent more for hernia repair and 38.2 per cent more for an appendicectomy compared with the next-most expensive private hospital option. However, the same data showed that Mount Elizabeth is not always the costliest option. For example, fibreoptic colonoscopy day surgery and iridectomy at Mount Elizabeth Orchard and Novena were cheaper than at other private hospitals. Insurer Great Eastern announced on Tuesday (Jun 17) that it has stopped issuing pre-authorisation certificates for policyholders admitted to the two Mount Elizabeth hospitals. Such certificates are still available for other hospitals and day surgery centres, it said. Pre-authorisation refers to the insurer's approval of coverage for medical costs before treatment. 'In the last few years, we have observed that certain private hospitals have been charging significantly more than others for the same treatment, same clinical outcome, similar level of complexity, as well as for procedures that are less complex," the insurer said on Thursday in response to CNA's queries. "The cost difference in total bill size typically ranges between 20 and 30 per cent but can sometimes go higher in some cases.' Based on MOH data, the typical inpatient bill for a knee arthroscopy – a surgical procedure to diagnose problems within the knee joint – at Mount Elizabeth Novena was S$22,559 (US$17,560) and S$22,208 at Mount Elizabeth Orchard. It was cheaper at Gleneagles Hospital, which charged S$21,456. For an appendicectomy – removal of the appendix – Mount Elizabeth Novena charged S$30,808, compared with S$22,297 at Raffles Hospital, while for hernia repair, Mount Elizabeth Novena charged S$35,944, higher than the S$32,288 charged by Gleneagles. In contrast, iridectomy, a surgical procedure primarily to treat glaucoma, was cheaper at Mount Elizabeth Orchard (S$2,367) and Mount Elizabeth Novena (S$2,602) compared with Farrer Park (S$3,874). Beyond MOH's data, CNA reviewed itemised hospital bills from Mount Elizabeth Orchard, Parkway East and Gleneagles over the past two years. While Mount Elizabeth charged marginally more for common items such as hygiene sheets and lignocaine injections (1.7 to 7.7 per cent higher), it charged less for other items, such as ECG electrodes. Mount Elizabeth Orchard and Novena are operated by IHH Healthcare Singapore, the country's largest private healthcare provider. Other hospitals under its umbrella – including Gleneagles and Parkway East – are not affected by Great Eastern's pre-authorisation suspension. CNA contacted IHH and Great Eastern for comment on the pricing differences. In response, IHH said that comparing the typical bill sizes across hospitals and interpreting them at 'face value' is 'overly simplistic' and 'misleading' in reflecting each hospital's value and affordability. 'The Table of Surgical Procedures is a ranked listing of procedures that focuses on the intent and outcome of the surgical procedure. It does not reflect the surgical access route or the technologies, facilities and equipment used. Neither does it reflect the expertise and skill of the healthcare practitioners involved,' an IHH spokesperson said. The spokesperson also said that the two Mount Elizabeth hospitals, due to their level of 'equipping and capabilities', tend to take in more complex cases across all specialties, as doctors also make 'active choices' on where to admit patients based on the patient's best clinical interests. 'It is therefore natural that the average bill sizes seen at these two hospitals be higher compared to other facilities,' the spokesperson added. Great Eastern referred CNA to its previous statement. Great Eastern said earlier that the move is part of its efforts to manage rising healthcare costs and ensure affordability for its policyholders. "We want to assure our policyholders that there is no change to their coverage, and they can still receive treatment and submit claims as usual with no impact to their benefits," a spokesperson added. The IHH spokesperson said that their analysis of publicly available data from MOH does not correspond to Great Eastern's claims that bills at Mount Elizabeth hospitals are 20 to 30 per cent higher. They added that they have formally written to the insurer and are 'awaiting their response'. IHH previously expressed "surprise" at Great Eastern's move, saying it has been in active discussion with the insurer over the past few months. 'We do not agree with GE's claim about higher prices at two of our hospitals for similar procedures and case profiles," its group COO and Mount Elizabeth CEO Yong Yih Ming said on Wednesday. "Each of our hospitals has different focus and areas of excellence - Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital house facilities and equipment that allow specialists to manage patients and perform surgeries that are not available at other hospitals.' This is also why some of the more complex cases are managed at these two hospitals, he said. In response to media queries, MOH said on Thursday it is engaging Great Eastern to better understand the implications of its decision. Integrated shield plans (IPs) are commercial products, the ministry said. While MOH regulates the key parameters of these products for financial sustainability, insurers retain discretion over administrative processes like pre-authorisation. "However, IP insurers would have to ensure that policyholders continue to be able to access the full benefits of their policies in accordance with the terms and conditions for claims, as stated in their policy contracts," it added. MARKET DYNAMICS, COST STRUCTURE DRIVE PRICING VARIATION Experts told CNA that pricing differences across private hospitals are influenced by a range of factors, including the time and resources required and the hospital facilities used. 'Public hospital fees are subsidised by the government and are structured to ensure patient affordability. In contrast, private hospitals operate independently and need to factor in staffing, overheads, service-level costs and profitability when setting prices,' said Mr Joshua Siow, who is a partner at Simon-Kucher and its head of healthcare and life sciences in Singapore. For example, in the case of different drug prices, public hospitals rely on a centralised procurement system, which helps standardise prices across institutions, said Ms Verlene Law of The Reg Consultants, a regulatory service provider specialising in pharmaceutical and medical companies. Private hospitals procure drugs independently and prices can differ based on their supplier agreements and business models, she said. Private hospitals may also serve different patient segments or offer specialised clinical services that justify higher fees, said Mr Siow. "Patient experience, hospital infrastructure and differing target customer segments can contribute to variation," he said. "Importantly, some institutions may be equipped with specialised equipment or specialist capabilities that may not be routinely available at other centres.' He added: 'As for-profit institutions, private hospitals in Singapore operate independently and serve varied patient segments. In this context, pricing is shaped less by regulation and more by consumer choice – patients can select their providers, and hospitals must remain reasonably price-competitive to sustain demand.'
Yahoo
2 days ago
- Health
- Yahoo
askST: What is pre-authorisation, and can insurers refuse to give it?
SINGAPORE - Insurance group Great Eastern (GE) announced on June 17 that it had temporarily stopped issuing pre-authorisation certificates for policyholders admitted to Mount Elizabeth hospitals. Mount Elizabeth and Mount Elizabeth Novena hospitals had higher costs than other private hospitals, GE said, adding that its move was aimed at 'prioritising facilities that deliver the same high-quality care with greater cost transparency and cost-effectiveness'. The decision took both the hospitals and GE policyholders by surprise. The Straits Times looks at how withholding pre-authorisation certificates may affect healthcare and hospitalisation coverage of policyholders. Some health insurance plans require the doctor of its policyholder to request a pre-authorisation certificate before doing specific procedures. A pre-authorisation certificate effectively confirms that the insurer has approved the medical treatment, including the costs, before the treatment begins. Without getting pre-approval, some or all of the bill may not be covered by insurance, leaving the patient to pay for it himself. This process helps the insurer assess whether a treatment recommended by the doctor is medically necessary, and at a reasonable cost. For the policyholder, it ensures that the treatment is covered under the plan. It also keeps out-of-pocket expenses in check, allowing the insurer to settle the medical bill directly with the hospital. Through the pre-authorisation process, the insurer helps ensure the policyholder receives cost-effective treatments. Non-panel specialists and government hospitals require a letter of guarantee (LOG). It provides assurance of payment to hospitals on behalf of patients for the portion of their medical bills covered by insurance, reduces the upfront cash deposit the hospital requires, and makes healthcare more accessible and affordable for patients. In Singapore, patients may need both the LOG and the pre-authorisation certificate before undergoing surgery. To apply for both, the patient needs to consult his doctor, who will then submit a pre-authorisation request to the insurer. If approved, the insurer may also issue an LOG at the patient's request, assuring direct payment to the hospital for covered expenses. The patient may also need to submit additional documents and forms, depending on the insurer and the specific treatment. The pre-authorisation certificate is the insurer's permit for a specific surgery or procedure, while the LOG assures the payment for the hospitalisation is covered by insurance. The pre-authorisation provides clarity on coverage and potential costs before the policyholder undergoes treatment, allowing the patient to plan his healthcare expenses accordingly. Without it, patients would have to fork out money from their own pocket, and file a claim later – risking partial reimbursement or outright rejection. The LOG reduces upfront payment to the hospital, easing admission and surgeries, and can be generated instantly for selected public hospitals and institutions. Insurers can withhold pre-authorisation, and the reasons for doing so are: The planned treatment or procedure is not included in the policyholder's coverage; The insurer determines that the treatment is not medically necessary based on its review; The estimated costs are significantly higher than what the insurer deems reasonable; The insurer needs more information from the doctor or patient to assess the request; The policy requires treatment at a specific panel of doctors or hospitals; and In emergency situations where the pre-authorisation is waived, the insurer may deny coverage later if the treatment is deemed not necessary. However, insurers are encouraged by the Life Insurance Association to clearly communicate the reasons for withholding pre-authorisation to both the policyholder and the healthcare provider. This is because policyholders have the right to appeal against the insurer's decision to withhold pre-authorisation if they disagree with the insurer's assessment. Source: The Straits Times © SPH Media Limited. Permission required for reproduction Discover how to enjoy other premium articles here
CNA
2 days ago
- Business
- CNA
Great Eastern stops issuing pre-authorisation certificates for admission to Mount Elizabeth hospitals
SINGAPORE: Insurer Great Eastern from Tuesday (Jun 17) stopped issuing pre-authorisation certificates for policyholders admitted to Mount Elizabeth hospitals in Novena and Orchard. According to a notice on its Health Connect website, it said such certificates will still be available for other hospitals and day surgery centres. Pre-authorisation refers to the insurer's approval of coverage for medical costs before treatment. In response to CNA's queries, a spokesperson for Great Eastern said: "We have observed that, over the past few years, certain private hospitals have been charging significantly more for similar treatment." The move is part of the company's "ongoing efforts to manage rising healthcare costs and ensure long-term affordability for all policyholders". "We want to assure our policyholders that there is no change to their coverage, and they can still receive treatment and submit claims as usual with no impact to their benefits," the spokesperson added. For example, both hospitals can still issue electronic letters of guarantees or file claims to Great Eastern, where the claims will be assessed according to the terms and conditions of their policy. All eligible and covered claims will be paid, said the spokesperson. Letters of guarantees can be requested when patients are unable to settle the pre-admission deposit for day surgery and inpatient hospital treatments. It can be used to waive the deposit for up to S$50,000 (US$38,900) in private hospitals. Any pre-authorisation certificates issued before Jun 17 will be honoured, added the spokesperson. HEALTHCARE GROUP "SURPRISED" The two Mount Elizabeth hospitals are part of IHH Healthcare Singapore, the largest private healthcare provider in the country. Gleneagles Hospital and Parkway East Hospitals, also owned by the group, are not affected by the cessation of pre-authorisation certifications. The suspension 'surprised' IHH Healthcare Singapore, which has been in active discussion with Great Eastern over the past few months, the group's chief operating officer and chief executive officer of Mount Elizabeth Hospital Mr Yong Yih Ming told CNA on Wednesday. Mr Yong said: 'We do not agree with GE's claim about higher prices at two of our hospitals for similar procedures and case profiles. "Each of our hospitals has different focus and areas of excellence - Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital house facilities and equipment that allow specialists to manage patients and perform surgeries that are not available at other hospitals.' This is also why some of the more complex cases are managed at these two hospitals, he said. Great Eastern policyholders who are undergoing medical care by specialists at the Mount Elizabeth hospitals, or have treatment records there, will continue to have cashless access to hospital admissions. 'This ensures that these patients do not need to worry about cash outlay for their treatment,' said Mr Yong. 'We are also working closely with our specialists to avail price packages to patients, to help manage their cost of care.' In response to CNA's query on what the two hospitals would have to demonstrate for certificates to be issued again, Great Eastern said it encouraged policyholders to contact its medical care concierge for information on their "various options" for treatment. "This includes suggesting private and public hospitals where they could seek treatment, along with their respective costs and how much Great Eastern will cover for each, depending on the type of plan they hold," said the spokesperson. "This service has been specially designed to provide peace of mind, transparency, and help them make informed decisions." In response to CNA's query on whether AIA Singapore would be pausing pre-authorisation certificates to the hospitals, the company said on Wednesday that it continues to work closely with the Life Insurance Association of Singapore, the Ministry of Health and professional medical associations to manage healthcare cost inflation to ensure the continued accessibility of quality healthcare for policyholders. AIA Singapore did not state if it has a pre-authorisation arrangement with the Mount Elizabeth hospitals and if so, if it would continue with the coverage in the wake of Great Eastern's move.
Business Times
4 days ago
- Business
- Business Times
Daily Debrief: What Happened Today (Jun 17)
Stories you might have missed Singapore private club 1880 suddenly closes, going into liquidation [SINGAPORE] Private members' club 1880 suddenly announced its permanent closure effective Tuesday (Jun 17), with its holding company 38 Degrees and operating company 1880 Pte Ltd placed into provisional liquidation. Indonesia seizes 11.8 trillion rupiah from Wilmar Group in palm-oil graft case [JAKARTA] The Indonesian Attorney General's Office (AGO) has seized approximately 11.8 trillion rupiah (S$928 million) from five defendants involved in a corruption case related to crude palm oil (CPO) exports, involving subsidiaries of the Wilmar Group. 'Significantly higher costs': Great Eastern suspends pre-authorisation certificate for admission to Mount Elizabeth hospitals BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up [SINGAPORE] Insurer Great Eastern (GE) has temporarily suspended pre-authorisation certificates for Mount Elizabeth Hospitals from Tuesday (Jun 17). Singapore's key exports chart surprise 3.5% slide in May as front-loading cools [SINGAPORE] Economists believe that front-loading activity may have started slowing down, after Singapore's key exports declined 3.5 per cent on the year in May after April's surge. CAG calls for pre-qualification of main contractors for ground transportation centre in Changi [SINGAPORE] Pre-qualification of main contractors for the ground transportation centre at Changi East development is open, the procurement portal of airport operator Changi Airport Group (CAG) showed. Should we expect Singapore-based companies to list here? [SINGAPORE] Last month, reports emerged that fast-fashion retailer Shein intends to list in Hong Kong after its initial plan to do so in London was scuttled over concerns about its labour rights track record. Family offices look to raise allocations to non-US, developed markets equities: BlackRock survey [SINGAPORE] Family offices are raising their portfolio allocations for non-US developed market equities as tariff tensions and concerns about a US economic slowdown are prompting many to diversify, a BlackRock survey has found.
Malay Mail
06-06-2025
- Business
- Malay Mail
Singapore's Great Eastern proposes delisting with OCBC's S$700m offer
SINGAPORE, June 6 — Great Eastern is proposing to delist from the Singapore bourse by way of its largest shareholder Oversea-Chinese Banking Corp offering S$900 million (RM3 billion) to buy the rest of the insurer it does not already own, according to joint statement and filings today. Trading in Singapore-based Great Eastern's shares was suspended on July 15, 2024, after its free float fell below 10 per cent following an offer by OCBC to acquire an 11.56 per cent stake at S$25.60 apiece in May 2024. OCBC, Singapore's second-largest lender, had obtained acceptance from some shareholders and currently owns 93.72 per cent of Great Eastern. Under the new proposal, it is offering S$30.15 a share for the 6.28 per cent of the insurer's stock that it does not own. The latest offer is 17.8 per cent higher than last year's offer and values Great Eastern at S$14.27 billion. Independent financial adviser EY has assessed the offer is fair and reasonable and OCBC does not intend to revise it, according to the statement. It is OCBC's fourth attempt to fully acquire Great Eastern, following three bids since 2004. OCBC owns 93.72 per cent of the insurer, but that stake still falls short of the threshold needed to delist the company or launch a compulsory acquisition. Two companies controlled by Lee Thor Seng and his sons —members of the founding family behind OCBC — own nearly 2 per cent of Great Eastern, making them the second-largest shareholders, according to the insurer's annual report. Wong Hong Sun and Wong Hong Yen hold about 1 per cent, while Palliser Capital, which has criticised the latest takeover bid as unfair to shareholders, owns a 0.27 per cent stake, the report showed. Great Eastern proposed the delisting after assessing options available to resolve its shares trading suspension. The delisting offer is conditional upon at least 75 per cent backing from minority shareholders. OCBC will not be able to vote. If delisting cannot be achieved, Great Eastern would seek shareholders' approval on a second proposal to restore its free float by way of a one-for-one bonus issue comprising new listed shares with voting rights, and new non-listed shares without voting rights. According to the statement, OCBC intends to vote in favour of the bonus issue if the delisting proposal is not approved. OCBC would opt to receive the non-voting shares, which would dilute the bank's shareholding in Great Eastern to 88.19 per cent to help restore the free float and a resumption in trading. — Reuters
