Singapore’s Healthcare System: Features and Challenges

Singapore’s healthcare system is known globally for its efficiency and affordability. According to the Legatum Prosperity Index, Singapore holds the top rank in terms of healthcare efficiency, with a score of 86.9. It is expected that the healthcare system of Singapore will grow to 49.4 billion USD by 2029.

In this article, we are going to discuss Singapore’s healthcare system in detail, including the major contributions of Lee Kuan Yew in this specific sector in detail.

Features of Healthcare System of Singapore

Singapore’s healthcare system is renowned for its efficiency and quality, drawing inspiration from the British model and adapted by President Lee Kuan Yew. Here’s a simplified breakdown of its key features:

• Singapore’s healthcare system is accessible to all citizens, funded by a mix of government subsidies and public resources.
• It utilizes a blend of government subsidies, compulsory savings (Medisave), national healthcare insurance (Medishield Life), and cost-sharing mechanisms to finance healthcare services.
• The government exercises strict control over healthcare services, ensuring high standards and cost-efficiency through careful regulation of demand and supply.
• Both patients and service providers are encouraged to be mindful of healthcare costs, promoting efficiency and sustainability within the system.
• The system supports a wide range of health screening and lifestyle programs aimed at both preventing illnesses and providing high-quality curative medicine.
• Singapore’s healthcare system is committed to maintaining high standards in both preventive and curative healthcare, ensuring that citizens receive top-notch medical attention.

Healthcare Spending in Singapore

The public and private portions of the healthcare system are very different in Singapore. Around 2/3 rd of the healthcare spending is private and 1/3 rd is public. The country mixed the public and private healthcare delivery systems. Here are some major details as mentioned below.

• In 2023, the government spent an estimated $12.59 billion on healthcare. It is expected that the amount is going to be triple or $36 billion by 2029.
• The private healthcare expenditure was $8.2 billion in 2020 and it will increase to $13.5 billion in 2029.
• Singapore’s healthcare spending is expected to account for 5.9% of GDP. This percentage could increase to 9.0% by 2030.

Tiers of Healthcare In Singapore

In the healthcare system of Singapore. there are five classes of healthcare tiers to choose i.e. A, B1, B2+, B2, C. Choosing “A” means an individual has to pay for all the costs of treatment. On the other side, if an individual chooses “C” that means the government covers up to 80% of the costs of the treatment. Let us discuss the class in detail.

Tier	Description	Location	Cost	Coverage	Amenities & Services
A	Top-notch medical facilities with advanced technology and specialized services.	Private hospitals or clinics.	Highest	Patients pay 100% of the costs.	Premium services, advanced technology.
B1	Better amenities and services than lower tiers, more affordable than private options.	Public hospitals.	Moderate	Patients pay a significant portion, but less than Tier A.	Better amenities and services.
B2+	Good quality healthcare services including general medical services, basic diagnostic tests, and essential treatments.	Public hospitals.	Lower	More affordable than B1 and A, with some government subsidy.	Adequate care, basic diagnostics, and essential treatments.
B2	Intermediate level of healthcare services, shared rooms, access to better facilities than the lowest class.	Public hospitals.	More affordable	Balanced affordability and comfort, with government subsidy.	Better facilities than Tier C, shared rooms.
C	Basic medical care, government-subsidized, covers 80% of treatment costs.	Public hospitals.	Lowest	Government covers up to 80% of costs.	Limited services and facilities, longer waiting times.

MediSave Account

A MediSave account is a mandatory and personal healthcare savings account in Singapore. It helps its people to save money for healthcare purposes. It is available and by default mandatory for all Singapore citizens and permanent residents.

Account holders have to contribute some amounts to their MediSave savings per month. Under the Central Provident Fund Act, self-employed persons have to contribute to Medisave if their annual income is more than $6,000. Here are some major insights about the MediSave account as mentioned below.

• MediSave is a mandatory savings account for the citizens and permanent residents of Singapore.
• The contributions to the MediSave are made by employees, employers, and the government.
• The contributions are made based on a percentage of the salary or income.
• MediSave fund can be used to pay for various healthcare expenses i.e. surgery, treatments, and preventive screenings.
• MediSave balances can be used to pay for the policyholder’s healthcare expenses
• Citizens can use the funds for their family members too.
• If citizens do not use the MediSave money, it stays in their account. They can use it in the future.
• Central Provident Fund (CPF) Board regulates the contributions and withdrawals to ensure the efficient use of healthcare financing.
• For the first two days a citizen can use up to $550 per day. After that, it is $150 per day. The yearly maximum is $5,000.
• Citizen get up to $300 per day on the ward charges, treatments, tests, and medicine during your hospital stay. The amount is totally depends on the complexity of surgery is.
• Daily hospital charges are covered up to $150 per day, with a yearly maximum of $3,000.
• For prenatal care i.e. consultations and scans, citizens can use up to $900.
• Delivery expenses range from $750 to $2,600, depending on the type of delivery.

MediShield Healthcare Program

MediShield is a mandatory health insurance plan. It is only available for Singapore citizens and permanent residents. It helps to pay the large hospital bills and some outpatient treatments like chemotherapy and dialysis.

• MediShield Life Council targets overseas Singaporeans who are permanently residing abroad.
• There is a fixed amount to pay before receiving payouts.
• It ranges from $1,500 to $3,000 based on age and ward class. It is paid once a year for the treatment.
• Its annual benefit of 50000 USA with a lifetime limit and covers almost 90% of the total expense.
• Members generally receive unlimited in-hospital coverage through the Hospital and daily out-of-hospital coverage for services.
• The services covered under it like Basic and Specialized Dentistry, Optical, Family Practitioner visits, Specialists, Radiology, Pathology, and more.

Medifund Healthcare Program

MediFund is a fund from the government in Singapore that falls under the Singapore’s Safety Net Program. It helps lower-income citizens who struggle to pay medical bills. You can use MediFund to cover costs at restructured hospitals, national specialty centers, and long-term care services.

Three Pillars of Singapore’s Healthcare System

There are three major pillars of the Singapore’s Healthcare System as mentioned below. These are really relevant and any country can adopt them to reframe their healthcare system including India.

Public Health Trust

Past successes in handling outbreaks like SARS built trust in Singapore’s public health system. Despite some misinformation, most people trust the government’s response to COVID-19.

Aging Population

By 2030, it is projected that one in four Singaporeans going to be over 65. The government is tackling issues like a lack of healthcare workers and fewer taxpayers to support retirees. They rely on migrant labor, but there are fairness concerns as migrants do not get the same benefits. Solutions include community care and support for caregivers.

Centralized Housing Planning

Singapore plans housing for over 80% of residents centrally. They design neighborhoods with social areas to improve health. This is important as the population ages, and the government focuses on integrated, community-based care.

Major Contributions of Lee Kuan Yew

Lee Kuan Yew (LKY) is known as the “Father Of Singapore”. He served as the first Prime Minister of the city country from 1959 to 1990. Here are the major contributions of Lee Kuan Yew In Singapore’s Healthcare System as mentioned below.

• Lee Kuan Yew made sure hospitals had good equipment and enough doctors and nurses.
• He implemented policies to improve public health, including sanitation and disease control measures, reducing the prevalence of diseases like malaria and tuberculosis.
• The development of schemes like MediSave and MediShield took place under his tenure.
• He set up programs to teach people about staying healthy.
• Lee Kuan Yew helped create savings plans so people could save money for medical costs.
• He also made sure that everyone, no matter how much money they had, could get medical help when they needed it.
• Lee Kuan Yew’s efforts helped Singapore become one of the best places for healthcare in the world.

Singapore General Hospital (SGH)

Singapore General Hospital (SGH) is the first hospital in Singapore. It is the largest and oldest general hospital in this country city. Here are some details as mentioned below. The average dischrage day of Singapore General Hospital (SGH) is 4.5 to 5 days.

Location	Central Region, Singapore; near Bukit Merah and Chinatown districts
Affiliation	Operated by SingHealth, under the Ministry of Health (MOH)
Establishment	Foundation laid in 1821; major expansion in 1926; subsequent expansions and renovations
Size	Largest and oldest hospital in Singapore; functions as the national hospital
Speciality Centers	Singapore National Eye Centre (SNEC) National Heart Centre Singapore (NHCS) National Cancer Centre Singapore (NCCS) National Dental Centre Singapore (NDCS) Elective Care Centre Singapore (ECC) (expected completion in 2025)
Teaching Affiliation	Principal teaching hospital for Duke–NUS Medical School, affiliated with the National University of Singapore
Rankings	Consistently ranked in top 10 hospitals worldwide; highest ranked hospital in Asia
Notable Services	Performs high number of transplants, including solid hematologic and organ transplantation

Challenges of Singapore’s Healthcare System

After the COVID period the healthcare charges increased a lot. Though Singapore has an efficient and effective Healthcare System but there are some disadvantages and challenges also. Let us discuss.

• Healthcare costs in Singapore are rising fast, even though the country currently spends only five percent of its GDP on healthcare.
• Between 2010 and 2020, the government’s spending on healthcare tripled from about $3 billion to $10 billion. It’s expected to nearly triple again by 2030.
• To make healthcare better, Singapore is combining primary and specialty care. They’re giving incentives to family doctors to focus on preventing illnesses and improving overall health.
• Family doctors taking part in programs like Healthier SG must join a Primary Care Network for teamwork and use a national electronic health records system. This means many doctors will need better technology.

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Conclusion of Healthcare System

Singapore’s healthcare system, while lauded for its tiered pricing structure and cutting-edge facilities, faces challenges These include rising chronic diseases in an aging population, limitations in primary care access, and financial incentives that might hinder care coordination. In essence, Singapore needs to address these issues to ensure its top-notch healthcare system remains sustainable and accessible for all.

Singapore’s Healthcare System – FAQs

Is Singapore healthcare expensive?

Singapore’s healthcare system, while considered one of the best in the world, can be expensive, especially compared to other countries in the region.

How good is Singapore’s healthcare system?

Singapore has surged to 5th place in patient-centered care, up from 29th in 2021, thanks to better patient safety, transparency, and shorter doctor waiting times.

Is health carefree in Singapore?

In Singapore, universal healthcare is funded by the government, providing access to public health facilities and mandatory insurance. However, public healthcare isn’t entirely free for patients.

What is the name of Singapore’s healthcare system?

Singapore’s health insurance system centers on the “three M’s”: Medisave, Medishield, and Medifund. Medisave, a compulsory savings plan, deducts 7% to 9.5% of a worker’s wages.

Why is Singapore healthcare so cheap?

Singaporean citizens and Permanent Residents admitted to public hospitals receive government subsidies for medical fees, adjusted based on their chosen ward category and income.

What is the quality of care in Singapore?

Singapore’s healthcare system is the most efficient in the world, according to the latest Bloomberg health systems ranking; further, according to the Economist Intelligence Unit, Singapore has the second-best healthcare performance in the world.

How is the healthcare system in Singapore?

Singapore has a strong reputation for health services and healthcare systems; in 2000, the country was ranked sixth in the world by the World Health Organization. Public hospitals have autonomy over management decisions, and compete with one another for patients.

What is the quality of hospitals in Singapore?

Singapore General Hospital is the first hospital in Singapore. It is the largest and oldest general hospital in this country city. Here are some details as mentioned below. The average dischrage day of Singapore General Hospital (SGH) is 4.5 to 5 days.

What is the name of Singapore’s healthcare system?

Singapore’s health insurance system is built around the “three M’s”. They are Medisave, MediShield, and Medifund. The Medisave program is a forced savings plan that represents between 7% and 9.5% of a working person’s wages.

Which country is no 1 health care system in the world?

According to a 2023 ranking by Statista, Singapore holds the top spot for the world’s best healthcare system.

What are the key challenges of the health care system in Singapore?

The main drivers of these challenges are the rising prevalence of non-communicable diseases and rapid population ageing, limitations in the delivery and organisation of primary care and ILTC, and financial incentives that might inadvertently impede care integration.