MOH may run own nursing homes

The Health Ministry has revised its initial target of 15,600 beds by 2020 to 17,150 - a 10 per cent increase.
PHOTO: MOH may run own nursing homes

SINGAPORE - For the first time, the Ministry of Health (MOH) is planning to run its own nursing homes to help Singapore cope with the demands of a greying population.

It is also looking into releasing land for new facilities and helping operators scale up more quickly, after revising its initial target of 15,600 beds by 2020 to 17,150 - a 10 per cent increase.

"With more rapid population ageing in the next couple of decades, we need even more nursing home capacity to meet the anticipated increase in demand for nursing care," said Health Minister Gan Kim Yong yesterday, as he revealed several initiatives to ramp up the number of beds from around 10,000 now.

First, MOH is considering running three to four of its own nursing homes. These will help the ministry better understand the issues faced by operators, and come up with solutions and innovations in eldercare which can be adopted by others.

"Our intention is not to become a major player in the market," said Mr Gan, pointing out that MOH intends to directly operate only about 1,000 beds by 2020, which will account for 6 per cent of the total.

To help operators expand, MOH will call for tenders in which more than one nursing home will be awarded to one operator at a time.

These homes will also be located close to each other so that operators can enjoy economies of scale and better manage resources.

The first of such tenders will be launched this month, and is open to voluntary welfare organisations and private operators. The ministry will pay for the building of these facilities, and lease them out to operators in order to keep costs low for patients.

MOH had announced two years ago that 10 nursing homes with 3,000 beds will be built under this Build-Own-Lease model by 2016.

Yesterday, Mr Gan said another nine homes, which will provide 2,000 beds, will be built under this scheme between 2017 and 2020.

The Government also plans to release suitable land sites and state properties for the private sector to own and run their nursing homes with their own care models, he added. This will add about 450 more beds by 2020.

About 1,000 more beds will also be provided through the expansion of existing nursing homes.

Mr Gan revealed his ministry's plans at the opening of the Society for the Aged Sick's new tower block in Hougang, which added 160 beds to the previous capacity of 244 beds.

Nursing home operators which The Straits Times spoke to welcomed MOH's plan to run its own homes. All Saints Home chief executive Eugene Yeo said: "It's encouraging that the policymaker wants to experience firsthand the challenges on the ground."

However, some were concerned about manpower issues, given the crunch affecting the health-care sector. Loh Su Ching, chief executive of Ren Ci Hospital, hoped for a "level playing field" in hiring staff.

"The recruitment machinery behind MOH-run homes will definitely be bigger. These homes may be perceived to be more attractive employers, with strong government funding behind them."

This article by The Straits Times was published in MyPaper, a free, bilingual newspaper published by Singapore Press Holdings.

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