Why Singapore hospitals became less profitable in 2011

Expenditures are accumulating faster than receipts resulting in lower operating surplus.

According to the latest data from Statistics Singapore, the profitability ratio of overall health services -- defined as the ratio of operating surplus to operating receipts -- was 10.6 per cent in 2011, lower than the 11.2 per cent registered in 2010.

"The drop in profitability ratio was mainly attributed to lower operating surplus recorded by hospitals. Within the industry, western clinics registered the highest profitability ratio of 22.3 per cent in 2011," added StatSing.

In fact, taken as a whole. the Siingapore health services industry is racking up expenditures faster than it is earning receipts. Total operating receipts generated by the health services industry was $9,646 million in 2011, 8.0 per cent higher than the $8,931 million collected in 2010. Within the industry, all groups, namely hospitals, western clinics, non-western clinics, dental services and other medical services recorded growth. On a per establishment basis, operating receipts rose 1.9 per cent to $2.2 million in 2011.

Meanwhile, total operating expenditure was $9,068 million in 2011, an increase of 8.8 per cent over the previous year’s total of $8,337 million. Operating expenditure per establishment went up 2.6 per cent to $2.1 million in 2011. Total operating surplus grew by 2.2 per cent from $1,000 million in 2010 to $1,022 million in 2011.

Given these values, the operating surplus per establishment decreased 3.6 per cent to $233,200 in 2011. Total value added of the health services industry amounted to $5,384 million in 2011, representing an increase of 9.1 per cent compared to 2010. All groups in the industry registered higher value added in 2011. On a per establishment basis, value added rose 2.9 per cent to $1.2 million in 2011.

Total value added of the health services industry amounted to $5,384 million in 2011, StatSing also revealed, representing an increase of 9.1 per cent compared to 2010. All groups in the industry registered higher value added in 2011. On a per establishment basis, value added rose 2.9 per cent to $1.2 million in 2011.

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