Debated in Parliament on 6 Jan 2020.
Debate resumed.
Senior Minister of State Edwin Tong.
Thank you, Sir. Sir, the point that Members raised about cost and that it be not transferred, ultimately, to patients is a point that we are indeed concerned about. To give one example, to reduce the administrative workload for all existing providers as we implement the Bill, MOH conducted extensive stakeholder engagements – part of what we did in that two years leading up to the preparation of this Bill – to understand and do a deep dive of their licensing needs and map these, as far as possible, to the new Bill licences and the requirements in this new regime.
On Dr Chia Shi-Lu and Mr Christopher de Souza’s query on how we will help providers, specifically the smaller ones, transition from the current PHMCA to the future HCS Bill, let me assure the House that MOH will support and guide all licensees to ensure a seamless transition to the new licensing regime.
This will be done at each implementation phase, where PHMCA licences will be swapped out for equivalent licences under this Bill, without the need for existing licensees to file any applications or pay additional fees.
MOH will continue to provide clear instructions and appropriate channels for stakeholders to ask questions, clarify their doubts or come and seek assistance from us on the transition to the new regime.
Various Members – Dr Chia Shi-Lu, Prof Fatimah Lateef, Mr Christopher de Souza, Ms Irene Quay, Mr Murali Pillai, Mr Melvin Yong and also Dr Lee Bee Wah – have asked how this Bill impacts operating costs and in particular whether licensees will pay more fees as a result of the new landscape. Again, let me assure the House, and I think one of the Members said, and I echo that, that this is not intended as a revenue generating mechanism. It is necessary because of the measures that I have set out at the opening speech, that the new regulatory landscape is necessary to deal with evolving changes to the healthcare landscape. MOH would not, under this new regime, overall be collecting more licensing fees on an aggregate basis, compared to the position today.
The general principle is that licence fees are pegged at a level commensurate with the cost of manpower and resources incurred from the expected inspections and the audits to be done. MOH has and will continue to streamline our licensing processes to keep our regulatory costs down, as well as reduce excessive regulatory burden on licensees.
In fact, based on our preliminary assessment as we map the services across to the new HCS Bill requirements, based on our assessment, more than 95% of existing providers today will see either no change or a decrease in the amount of fees that they will have to pay. So, there is really no reason or basis for providers to pass on any of these costs to patients. The remaining providers who will see an increase are mainly providers who will be providing new licensable services regulated under this Bill.
For existing providers facing higher fees, MOH will put in mitigation measures to support the transition and this would include implementing the increase gradually over three licensing renewal cycles. So, we will space out as far as possible the increase, spread it out over three renewal cycles.
Sir, let me conclude. The Bill introduces a regulatory regime that is sufficiently nimble and flexible to protect patient safety and welfare, but at the same time, take on board the rapidly evolving changes to the healthcare landscape. At the same time, it will accommodate new healthcare services, new care models and also nurture innovation. This will ensure that healthcare services provided in Singapore will be able to address the existing and also the future needs of our population.
Sir, I beg to move.
Well done, Senior Minister of State, you have kept it within five minutes.
Question put, and agreed to.
Bill accordingly read a Second time and committed to a Committee of the whole House.
The House immediately resolved itself into a Committee on the Bill. – [Mr Edwin Tong Chun Fai].
Bill considered in Committee; reported without amendment; read a Third time and passed.