Increased subsidies help offset fee hikes: MOH

30 August 2012, The Straits Times

A higher foreign worker levy was one key factor cited in the rise of charges in some nursing homes("Some nursing home operators raising fees"; Monday).

Yet, the reason that spurred the Ministry of Manpower to hike the levy was to encourage lesser dependence on foreign labour and to encourage employers to redesign jobs that will attract Singaporeans. 

It defeats the Government's dual aim if nursing homes pass the buck in the levy increase to their clients via stiffer fees.

Instead of merely awarding subsidies to families based on income level, the Government could consider providing nursing homes some form of subsidy per resident to help them stay sustainable. 

These subsidies could come with caveats such as an increased number of Singaporeans taking up patient-care jobs at the homes over a specified period of time. 

The ministry and the National Trades Union Congress could also help nursing homes redesign patient-care jobs so as to attract more citizens, especially retired nurses, to consider working part time there.

The ministry needs to ensure there are more teeth for its policies to work.

Using a blunt and simplistic instrument like raising the levy lets employers off the hook by simply passing the buck to consumers.

With an ageing population, more could be done to help the nursing-home sector as its role will only increase in importance in the years ahead. 

Edwin Lim

Reply from MOH

We thank Mr Edwin Lim for his feedback last Thursday ("Homes shouldn't undermine levy").

We agree with him that nursing homes play an important role in the aged care landscape, providing quality care and support for frail seniors. 

We also share Mr Lim's concerns over the fee increases in some nursing homes.

While nursing home providers have the autonomy to set their fees, responsible providers do consider the impact of higher charges on patients and families.

Some fee increases may be unavoidable, as the operating costs have risen over the years.

The Ministry of Health (MOH) has increased subsidies for nursing home care and absorbed the goods and services tax for subsidised patients from July to ensure that nursing home care remains affordable. 

The subsidy enhancements have helped to mitigate the fee increases in some nursing homes. 

In fact, most subsidised patients in these homes will see either no change, or even a decrease in out-of-pocket payment.

The foreign worker levy changes reflect a larger national effort to reduce our dependence on foreign workers and raise productivity. 

MOH works closely with the nursing homes to enhance their productivity and efficiency, and attract locals into the sector.

In March, MOH outlined plans to invest $21 million over the next five years to support continuing and advanced skills training in the intermediate and long-term care (ILTC) sector. 

We will also invest up to $96 million to fund ILTC providers' productivity initiatives, including job redesign to create jobs suitable for housewives and retirees to take up on a part-time basis.

Another $12 million was also set aside in FY2012 to enable voluntary welfare organisations in the ILTC sector to increase salaries. 

MOH continues to look into ways to support the sector in building up its manpower capacity and capabilities. 

We will continue to refine our initiatives to further develop the ILTC sector to better care for our seniors, while ensuring the affordability of aged care. 

Bey Mui Leng (Ms)
Director
Corporate Communications
Ministry of Health