(Paper Cmd. No. 2 of 2000)
Sir, first, I would like to thank all the Members who have spoken for their various comments and suggestions. I will take them up individually and follow up, even if I may not have the time to give them a full reply today. First, I would like to address the key themes that are raised by the Members and then I will take the specific issues point by point. The first theme is really how to ensure that we have the best delivery of health care services in Singapore. In this, we are talking about how to make the healthcare providers in the public sector, the polyclinics, the hospitals, the national centres work together and how to get the public sector and private sector to work together. My Ministry announced its plans to reorganise the public healthcare providers into two vertically integrated delivery networks last November. Each network will comprise healthcare providers ranging from the polyclinics, the regional general hospitals, the tertiary hospitals to the national specialty centres. The networks will provide more integrated and better quality healthcare services through closer cooperation and resource sharing. This will then minimise the duplication of services and ensure the optimal development of clinical capabilities. This vertical integration will involve interfacing the polyclinics with the regional general hospitals, the regional general hospitals with the tertiary hospitals, and the acute hospitals with the national specialty hospitals. Mr Bernard Chen asked how would the national centres fit into this framework and their relationship with the acute hospitals. The role of the national centres as spelt out in the White Paper remains unchanged after the two networks are formed. The national centres will continue to deal with the more complex cases requiring more expensive equipment or highly specialised expertise. They will centralise all the more complex cases so that the workload can sustain the very special skills and expertise needed. Based on this rationale, my Ministry has worked with the national specialty committees to define the level of medical care that will be provided at the national centres and the acute hospitals. The acute hospitals will continue to provide secondary care in these specialties, and refer the more complex cases to the national centres. The national centres will also be the centre for research and teaching for their respective disciplines. The national centres are to treat the more complex and rare medical conditions, and therefore understandably the fees would be higher because more resources are incurred for these very specialised treatments. We have centralised these specialised manpower and equipment in the national centres, thus avoiding the higher cost which would have resulted if we duplicate all these in all the hospitals. For B2 and C class patients, the costs of land and buildings are fully subsidised by the Government. In addition, they are provided with 65% and 80% subsidy of the running costs. The national centres are grouped with the network that they are co-located with so that they can leverage on the network's administrative support. However, the services and expertise of the national centres will continue to be made available to patients across the two networks. Patients from one network can be referred to the national centre in the other network and will be given the appropriate level of service and standard of care. So as far as the patient is concerned, there is no change. The changes will be made to the integration of the backroom support and services. Next, let me turn to the integration between the private and public sectors. I agree entirely with Dr Lily Neo that in addition to the vertical integration between the hospitals and the primary care, there should also be greater lateral integration between the private sector and the public sector. We already have several avenues for the private sector doctors to contribute to health care in the public sector. Let me give a few examples. Firstly, we have the Visiting Consultant Scheme that Dr Lily Neo also talked about. I think there is room for improvement in that scheme. Secondly, we involve the private sector doctors to contribute their expertise in complex procedures, like heart and liver transplant programmes. The transplant teams involve doctors from both public and private sectors. Thirdly , private sector doctors are appointed to various committees to assist the Ministry to formulate policies in clinical practice, medical research, medical ethics and training matters. Dr Lily Neo has suggested that public sector doctors be allowed to practise in the private sector. This is already done. The issue is really how to extend the scope. Currently, consultants in the public sector hospitals attend to both subsidised and private patients. My Ministry is studying whether we could introduce greater flexibility to the private practice scheme by allowing public sector doctors to practise part of the time in the private sector. There could also be other ways to extend the scope. Dr Lily Neo also made several suggestions on the shared use of expensive equipment, bulk order of standard medical items, and the centralised sterilisation of medical equipment. All these suggestions are worth exploring. If it is mutually beneficial, I see no reason why the two networks should not take this up. I envisage that, with the reorganisation of the public healthcare delivery system, the networks will be able to work out new and innovative ways to involve private sector specialists and general practitioners in the provision of healthcare services and together provide Singaporeans with good quality health care. To run this system, we need the people. So let me now turn to the concerns raised by Mr Bernard Chen and Mr Ibrahim Othman. First, the issue of doctors. Over the past 10 years, the number of doctors in Singapore has grown steadily. As at end 1999, we had about 5,320 doctors in Singapore, or around 1,750 or almost 50% more than in 1990. While at the national level we may have sufficient doctors, we share Mr Bernard Chen's concern that the public sector should continue to have its fair share of the national talent. With the re-organisation of the health care system into these two networks, one of the key tasks of the networks is to come up with innovative methods to develop and retain their medical specialists. For example, development of talent would be done across the hospitals in each of the networks. The remuneration system would also be more sensitive to market conditions and commensurate with the calibre of the talent. The networks will also provide a more conducive environment for good calibre doctors to practise, teach, do research and develop themselves professionally. In this way, the two networks can be more competitive in training and retaining their staff. At the same time, I would convey the comments of Mr Peh Chin Hua to the networks to make sure that doctors are more communicative and go beyond the two words 'How' and 'Next'? On the issue of nurses, my Ministry is also concerned about the shortage of local nurses. We have to anticipate the demand that would come from the development of step-down care services to meet the healthcare needs of our ageing population. This need will include nursing homes, community hospitals and home care services that both Dr Tan Cheng Bock and Dr Jennifer Lee talked about. In the short term, we will need to recruit well-trained foreign nurses. But for Singapore, it is better for us, in the long term, to ensure that the nursing profession is attractive to young Singaporeans. Nurses form the backbone of the healthcare system. We want to encourage capable and bright young people to join the nursing profession, to build up the profession and raise the level of nursing services. Over the years, the Ministry has taken various measures to enhance nursing as a profession. But I think the key thing is still competitive remuneration. Therefore, we have recently reviewed the nursing salaries together with the restructured institutions. The nurses' salaries have fallen behind those in the other professions with people of equivalent educational level. There is therefore a need to adjust the nurses' salaries so that we can continue to attract a sufficient number of Singaporeans to take up nursing as a career. There must also be incentives to compensate for the onerous nature of the job. The restructured institutions will, therefore, be taking action to increase nurses' salaries in FY2000. The proposed revisions will increase the nurses' salaries by around 13%. This is not an across-the-board increase. We will increase the starting salaries of Assistant Nurses and Registered Nurses by 21% and 10% respectively. Corresponding adjustments will be made to the rest of the salary scales. The new salary package will include better shift allowance and other measures to better recognise the efforts of the nurses in providing 24-hour care to patients. We expect that the proposed revision will increase costs for the hospitals by an estimated $33 million. 2.15 pm Sir, I would now like to turn to the second theme which Members raised, which is how do we approach the problem of the ageing population. As I mentioned in previous sittings, this is not the first nor the last time we are going to discuss this issue. So, again, today, let me take through with Members what we intend to do to address this tremendous challenge. As we all know, the number of elderly persons in Singapore, aged 65 and above, is currently 7% of the population and will rise to almost 20% by the year 2030. This will put some pressure on our healthcare services. My Ministry recognises that therefore we have to start preparing ourselves early and put in place a framework to meet this challenge. So what is this framework? As can be seen from the various points raised by Members, I think the first step we must take is to keep the elderly fit and healthy for as long as possible. Second, to encourage regular health screening so that health problems can be picked up early for treatment. And, third, for those who fall ill or acquire severe disabilities, there must be a whole continuum of healthcare facilities, programmes and services to provide care in the most appropriate setting to the elderly and at affordable cost to them, their family and the Government. In doing all these, the public, the private and the people sectors will have important roles in this framework. So let me first address preventive healthcare. These are the points raised by Mr Bernard Chen and Dr Lily Neo. The challenge is how to keep the elderly fit and healthy for as long as possible. I think we agree entirely with the speakers on this. We all realise that a healthy lifestyle is really the key to the prevention of many chronic diseases which can eventually lead to disabilities. This applies not only to the elderly but also the general population. Therefore, my Ministry sets high priority on preventive healthcare, health promotion and public education to prevent the onset of chronic diseases. I think Members are all familiar with the various campaigns that my Ministry runs to educate Singaporeans on a general healthy lifestyle as well as on specific illnesses. These programmes all adopt a multi-strategy approach which involves the media, direct contact and many avenues to try and raise the awareness of Singaporeans on this. The second stage is health screening. Through health screening we can check whether the various health promotion messages that we have put forward have been translated into good health. I agree with Mr Bernard Chen that regular health screening is very useful. The issue is what do we look for in the screening. Members are aware of the National Health Survey in 1998 which showed that the prevalence of diabetes, hypertension and high blood cholesterol level increased markedly from the age of 50 years and above. If these conditions can be detected and treated early, then we will be able to avoid the high social and medical costs associated with them. The next issue is how do we encourage regular health screening for the elderly. As Advisers and MPs, we do this at the constituency level with the help of VWOs but often times, our best efforts are inadequate. In fact, those who need health screening most are the ones not likely to turn up for the screening. Instead, the more enlightened residents will turn up regularly. They are also likely to be the ones who are more healthy. Also, our efforts on the ground are often not comprehensive enough to cover all the elderly citizens in our constituencies. As Advisers and MPs, we also have limited resources to mount this effort year in and year out. After the screening, I think most of us feel that there is inadequate follow-up. Therefore, to redress all these shortcomings, my Ministry will reinforce what is being done now on the ground. We will embark on a systematic National Health Screening Programme in collaboration with the charitable organisations to detect diabetes, hypertension and high cholesterol level in people aged 55 years and above. The screening programme would start in the second half of this year. The plan is to complete screening all 374,000 of those aged 55 years and above within three years. To make it convenient for the elderly to participate in this programme, the health screening will be conducted at venues near to their homes, for example, in the void decks. Every senior citizen would be given a health booklet to track his screening results. I think Members will remember that this is one of the suggestions put up by Mr Ang Mong Seng, and we are pleased to adopt his suggestion. My Ministry will maintain the central database for all these screening exercises. All those screened and found to have abnormal results will be counselled on site and referred to their family doctor or the polyclinic for follow-up treatment. We plan to extend the screening programme to those who are 50 years and above when the plan is well established after three years. We would also like to encourage each person to attend screening once every two years. The estimated cost to screen each person is about $20. The Government will subsidise $15 while the resident will co-pay $5. The participating charitable organisations will pay for those who cannot afford the co-payment. The pilot programme will involve 10 to 12 divisions in the first phase. I hope MPs will volunteer their divisions for this programme. Sir, I would like to stress that there is a tremendous long-term potential for this mass screening exercise. I would put this akin to the mass vaccination of our young. If we can organise this properly, we would be taking full advantage of Singapore as a small urban, compact society. I think no other country will be able to embark on a similar ambitious programme such as this. I hope over the years, such screening exercises in our constituencies will be as regular as our meet-the-people sessions that we conduct every week. I envisage that we will be doing this screening practically once every two or three weeks and systematically encourage all our senior citizens to go for the screening. And we can help manage the medical conditions for those who have these illnesses. Sir, let me go to the next stage of the framework. If, after the screening, we identify those with health problems, then we would like to encourage them to be managed by their family doctors in an outpatient setting. Most of the health care needs of the elderly can, in fact, be met in the outpatient setting. So it is important for people with chronic illnesses, like hypertension and diabetes, to be treated and managed properly so that they do not acquire complications, resulting in severe disabilities. If we do this well, and if we do this systematically, then those who suffer severe disabilities and require long-term institutional care will be minimised. Dr Lily Neo urged for more shared care programmes between the primary care doctors to jointly manage patients with chronic medical problems with the specialists. I agree with her. There are some programmes already in place. We can encourage both the private and public sectors to do more. Dr Lily Neo also commented that private GPs should remain the main providers for primary health. This is indeed the case, because at the primary care level, the private sector GPs cater for 80% of primary care needs. In a rapidly ageing population, if we can move the centre of gravity of managing the chronic illnesses to the outpatient setting, then I see the role of the primary care providers continuing. As I said earlier, there is pressure for the primary care providers to upgrade themselves and raise the confidence of the general public in their capabilities. We will do so by better training of the family doctors through various programmes, like the Masters in Family Medicine and the Diploma in Geriatric Medicine. If we can upgrade the doctors through continuing medical education, then the GPs would be equipped to provide better care. Beyond care in the outpatient setting, both Dr Jennifer Lee and Dr Tan Cheng Bock raised the issue of home care. We also anticipated this requirement. Just as in the US where the acute hospitals will only look after the more severe cases, there is now a general sharing of care through other step-down facilities. In Singapore, in fact, we are taking measures to develop this overall supporting structure. There will be a community hospital next to every regional general hospital. We are already starting to build the rehabilitation hospital in Tan Tock Seng Hospital and that is provided in the budget for this year. We have embarked on many, many nursing homes. So I can assure Dr Tan Cheng Bock that the full range of supporting facilities for step-down care is already in place, and the funds are available. But how to provide this full continuum to meet the various needs, both from the nursing homes to the chronic sick to home care? Dr Jennifer Lee has spoken eloquently several times on the need for more home care services so that the elderly can be cared for in their homes. I agree entirely with her that institutional care should be the last resort and where we can, we should encourage home care. But home care is a more complicated and a more complex delivery system. Although we are working on it concurrently, I think Members will have to bear with us if we take a little longer to develop this full range of home care facilities and services. Today, we have six VWOs who provide home care, home nursing and home help services for about 6,500 elderly. My Ministry is actively encouraging other VWOs to provide home care services and is also currently working with another seven VWOs who have expressed keen interest to do so. We are also currently reviewing the subsidy framework for home care services to ensure that the lower income group will have access to such services. Many GPs, nurses and private hospitals are also providing home medical and home nursing care services. My Ministry will encourage the private sector to reach out to more elderly sick in the homes and we will provide the necessary support to facilitate the development of such services. Beyond home care, we must also develop the nursing homes for the elderly with severe disabilities who cannot be cared at home and must be looked after in an institutional setting. Recently, we announced the development plan for nursing homes up to the year 2010. Mr Yeo Guat Kwang has asked whether the 40% private sector share for nursing homes is the right balance. Let me explain the rationale for this decision. Today, the VWOs are the main providers of nursing home services, providing around two-thirds of the total nursing home beds. As the population ages rapidly, I think it would be a tremendous challenge to find increasing numbers of volunteers who are able to raise increasing sums of money from the community each year to run the VWO nursing homes. We therefore need to establish the nursing homes on a more sustainable basis. The VWOs are charitable organisations and should focus their efforts on the indigent and the poor. They should also concentrate on upgrading their professional capabilities and level of care. If the VWOs can look after 60% of the nursing home requirement, I would see that as a tremendous achievement. To complement the VWOs, my Ministry will set up the private nursing home market share at 40% by the year 2010, so as to provide more options to Singaporeans. We will step up the development of private nursing homes with the following measures. Firstly, we will help the existing operators using these buildings to secure longer tenancies. This will encourage the operators to upgrade their facilities and their service. Secondly, we encourage the private sector to develop purpose-built nursing homes by tendering out sites for such homes. At least 10 sites, each sufficient for a 200-bedded nursing home, will be offered by the year 2010. We will, of course, monitor and review these plans over the next few years, taking into consideration the overall supply and demand of nursing homes. 2.30 pm Another key element in this framework is to be able to make sure that Singaporeans can afford such nursing home care. My predecessor has announced previously the consideration of a severe disability insurance to meet the high costs of such long-term care. We expect to launch this in about two years' time after we have completed the actuarial study to determine the appropriate levels of premium and benefits. Once we have this severe disability insurance scheme, then Singaporeans can save for their old age and be covered by insurance if they suffer severe disabilities. Dr Jennifer Lee was concerned that by changing the name of the scheme from "long-term care insurance" to "severe disability insurance", she reads the nuance as a diminution in the scope of the coverage. Let me explain that, when Mr Yeo Cheow Tong announced last year the thinking behind the long-term care insurance, he said that this insurance would not cover chronic conditions, such as diabetes and hypertension, which are not severe disabilities in themselves, but require outpatient treatment. So the intention all along is to restrict ourselves to those who have to incur a very heavy financial burden as a result of severe disabilities. Members will appreciate that if you are running an insurance scheme, you want the appropriate pay-out ratio. The more generous you make the pay-out ratio, the higher the premiums will be. That has been our experience with MediShield. If you have a pay-out ratio of 1:10, then you can keep the premiums low and everybody can afford the premiums. If you make the coverage wider and the pay-out ratio higher, then the premiums will be much higher. So we need to strike the right balance. We have changed the name to "severe disability insurance" to better reflect the policy intention and not to reduce the coverage. I hope this sets out the framework of what we intend to do for the ageing population. We will continue to concentrate on preventive healthcare. We will undertake this very ambitious programme to screen all senior citizens aged 55 and above and, over time, to bring it down to also 50 years old, screening once every two years. Then those with medical problems, to manage them in the outpatient setting, and those with more severe disabilities, to allow them to be looked after both in the home setting as well as the nursing homes. We have put in place the financing for the low income group. They will be subsidised through the Eldercare Fund. For the average Singaporeans, in two years' time, we will set up the severe disability insurance so that they can save and pay for their long-term care. The third area that I would like to cover is the whole issue of affordable healthcare. This was raised by Mr Low Thia Khiang, Mr J. B. Jeyaretnam and also Dr Tan Cheng Bock. Mr J. B. Jeyaretnam is not around. Every time he is not around, he does not listen to our answers, the next time round, he will ask the same question. He asked for a committee to be set up to study national healthcare insurance. In fact, that committee was set up in 1992 and the White Paper on affordable healthcare was a result of that committee. That committee deliberated and decided that Singapore would not have a national healthcare insurance system, but our system will cover the 3Ms - Medisave, MediShield and Medifund. Today, our healthcare expenditure constitutes approximately 3.1% of our GDP. So this is very affordable and it is a very good level of care at very reasonable cost. The national healthcare expenditure means the total expenditure by the country, people, employers and the Government. If you look at the household expenditure on healthcare alone, it is only 2.5% of household expenditure. Individual households spend on an average 2.5% on healthcare. This is again very affordable. And we have done so because of this very sound 3M financing framework - Medisave, MediShield and Medifund. For Medisave, 84% of our people have Medisave accounts. This is a very high percentage. But I think we can do more. We will want as many as possible to have Medisave accounts. 71% today are covered by MediShield, insurance or its equivalent. This is again a very high level of medical insurance. So instead of the national healthcare insurance that Mr J. B. Jeyaretnam talked about, first, we ask people to save through Medisave and then we put people on to MediShield and equivalent catastrophic insurance schemes. And 71% of our people are covered by MediShield. For those who cannot afford to pay their bills, they can apply through the Medifund for assistance. Last year, 97% of all applications for Medifund was approved. In the FY99 budget, the Government has topped up the Medifund by an additional $100 million, bringing the total now to $700 million. So our healthcare financing scheme is very robust and helps keep our healthcare costs down. Mr J.B. Jeyaretnam asked for a breakdown in the cost. Every patient who goes to the hospital gets this breakdown in cost, systematically setting out how much it costs to look after him, whether he is a C or B2 class patient and what he has to pay and what is the Government subvention. A typical hospital bill for a C class patient is less than $700. We track this all the time. And the Government subsidises 80% of the total cost. So the breakdown of the cost is given for every bill that every patient gets from the hospital. So I do not quite understand what Mr J.B. Jeyaretnam wants when he asked for a breakdown. It happens all the time in every case in hospital. Let me also touch on the implementation of the casemix and some of the issues raised by Dr Tan Cheng Bock. He is concerned that casemix may lead to premature discharge and a poorer quality of care. First, let me state that casemix does not dictate to the doctors in all the hospitals how they should manage their patients, nor does it help hospitals or clinicians decide when to discharge the patients. As always, the patient shall only be discharged when medically appropriate. Casemix is only classified after the patient is discharged. So the whole professional system will continue to look after the patient as before, based on their professional judgement. And the whole issue of subvention and classification only takes place after the discharge. Dr Tan Cheng Bock gave the example of outlier cases. Let me try to explain this to the House. Casemix assumes certain standard cases, say, for example, the case of appendicitis that Dr Tan mentioned. In general standard, typical cases, it will take about four days and the person will be well enough to be discharged. If the case is more complex and requires seven days for him to stay in the hospital, the doctors will continue to keep the patient for seven days in the hospital. At the end, when he has recovered, he will be discharged based on the decision of the doctors. In the subvention for the subsidies, the Government will pay to the hospitals the four-day standard rate for appendicitis, in this example. And for the three days extra, the Government will continue to pay the hospital a per day rate. So it is not true that the hospital is under pressure to discharge the patient because he wants to stay under the four-day standard rate. If it is an outlier case, the Government will continue to pay both the standard rate plus the extra days on a per day basis. So I want to assure the House that the casemix system will not result in premature discharge of the patients. Dr Tan Cheng Bock is absolutely right about this shift in the management of patients because we recognise that hospitals are very expensive institutions and they should concentrate on acute care. As can be seen in many developed countries and also, in Singapore, there is a trend towards day surgery, and there is a trend towards step down care and there is a trend towards recovery in other institutions, other than the acute hospitals. As I mentioned earlier, we have to set up this full range of supporting facilities so as to accommodate this shift in looking after the patient. Let me also address Mr Low Thia Khiang's point about the quality of care in our hospitals. I can assure him that we are able to achieve very good quality healthcare in Singapore at affordable prices, both to the individual as well as to the country as a whole, and this is not at the expense of quality. When we audit the hospitals, we look at four key parameters. First, accessibility, to make sure that everybody has full access to the services and facilities in the hospitals, and nobody is turned away because he cannot afford to pay. Second, the charges are affordable. We track the total bill size. We track the cost to the patient for the different ward classes. Third, we track the clinical outcomes of all the major operations in the hospital. So it is not good enough that you can go into a hospital, the cost is affordable, we also track the clinical outcomes that when you go in for a particular ailment, you come out properly cured. The clinical outcomes are rated with other reputable hospitals around the world. Fourth, we check the service quality - how the staff deals with the public, whether it is the waiting time, courtesy, the whole range of PS 21 parameters that we also set for our hospitals. We do monitor the performance of our hospitals in a very rigorous way. We are mindful that we want to ensure good quality affordable healthcare to Singaporeans, and not just look at the bottom line. So even though the patient load has gone up, the hospital manpower may not have gone up as much because of productivity and efficiency. But as I said earlier, we must keep our fair share of doctors, nurses and the whole array of people to run the hospitals, and we must continue to keep pace with the market remuneration. This means the cost to the hospitals will go up. The Government will bear its fair share of these cost increases through higher subventions to the hospitals. But the public must also pay for their share of the increases. Healthcare is an expensive business because 60% of healthcare is in manpower cost. It is not possible for us to ask the doctors and nurses to give us good quality healthcare and expect them not to receive their fair salary. We have to continue to give them a fair remuneration and that means we expect 60% of our cost to be increased every year. Drugs are also very expensive. They constitute 10% of our cost and we must expect to deal with better drugs, new medical technology and Singaporeans' expectations that they get the new drugs which are available in the market. So there is an increasing pressure on cost. We will manage it well. But at the same time, as I mentioned, the healthcare burden on Singaporeans is manageable because of the medical financing that we have put in place. Sir, I would like now to ask my Parliamentary Secretary to take over and answer the specific questions. 2.45 pm