Singapore is set to release land for a new not-for-profit private acute hospital, introducing a fixed-price land tender model. This initiative aims to provide a lower-cost private healthcare option. Health Minister Ong Ye Kung announced the plan, noting it would be the first private hospital land release in nearly two decades. The proposed hospital could accommodate 300 to 400 beds. Under the fixed-price tender, bidders will compete on qualitative factors like care models and cost efficiency, rather than land price. The government will also impose restrictions on bill sizes to ensure they remain within market norms. This move follows previous plans announced in 2024 to introduce a not-for-profit private hospital model to complement public healthcare and expand patient choices.
Minister Ong highlighted that rising private hospital costs are partly due to overly generous insurance riders, which have historically encouraged overconsumption of healthcare services and supported a high-end care operating model. He recalled a past tender where a high land bid resulted in a high-end private hospital, leading to a loss of healthcare professionals from the public sector. This experience has made the Ministry of Health cautious about adding more private hospitals.
The Ministry of Health has received encouraging responses from potential operators and donors regarding the not-for-profit private hospital concept. Efforts are underway to finalize key issues, with a decision on launching the tender expected in the latter half of this year. The government has also implemented measures to curb rising insurance premiums and private healthcare costs, including new Integrated Shield Plan riders with significant premium reductions.