Replies to LegCo questions

LCQ6: Public hospital services and fees

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Following is a question by the Dr Hon Yeung Sum and an oral reply by the Secretary for Health, Welfare and Food, Dr York Chow, in the Legislative Council today (February 23):


Question:


Regarding public hospital services and fees, will the Government inform this Council:


(a) whether there has been a drop in the number of attendances at the accident and emergency (A&E) departments which were classified as non-urgent cases since the introduction of A&E charges in November 2002, and of the progress and anticipated completion time of the review on A&E charges;


(b) of the fees of public hospital services which are being considered for upward adjustments and the time when the relevant proposals will be announced; and


(c) whether it plans to increase public hospital fees to alleviate the financial pressures on the Hospital Authority (HA) before the implementation of long-term health care financing schemes; if so, of the required level of fee increase in order to enable the HA to attain a break-even?


Reply:


Madam President,


(a) & (b) Since November 29, 2002, the Hospital Authority (HA) has introduced a charge for its A&E services. In the 12 months before introduction of this charge (i.e. from December 2001 to November 2002), there were 1,714,651 attendances that were classified as non-urgent cases. The corresponding figures for the 12 months immediately after fee introduction and the 12 months that follow are 1,294,206 and 1,385,281, representing a drop of 24.5 per cent and 19.2 per cent respectively. Of course, apart from the level of charges, the utilisation of A&E services is also affected by other factors such as seasonal fluctuations and major epidemics (e.g. the SARS outbreak in the spring of 2003).


We are conducting a new round of review on public health care service charges with a view to targeting government subsidies to patients and services most in need, rectifying misconceptions and improper use of services, as well as redressing the imbalance between public and private services.


The review on fee restructuring will cover a range of service areas including A&E, in-patient, general out-patient, specialist out-patient and drug prescriptions. Two different charges will apply to eligible and non-eligible persons respectively for each service category. In drawing up specific fee restructuring proposals, we will also examine the existing fee waiver mechanism for public health care services to ensure that adequate services remain accessible to persons in economic hardship who are non-CSSA recipients (including low-income groups, chronically ill and poor elderly patients).


The Administration will first conduct in detail an affordability study on the fee revision to ensure that the new charges to be introduced are affordable to the public. At this juncture, we do not have an implementation timetable.


(c) Due to the ageing population, advancements in medical technology and growing public expectations for health care services, medical costs in Hong Kong have been on the rise. In face of these challenges, we must identify workable long-term health care financing options (such as insurance and savings schemes) to ensure that our health care system is financially sustainable over the long run.


This pursuit of long-term financing options involves, among others, a substantial amount of research, consultation, public deliberation and consensus building. The actual implementation process may also entail complex administrative and legislative procedures. To prevent the imbalance between private and public health care systems from deteriorating, we consider it necessary to restructure the fees for public health care services first.


As regards the financial strains experienced by the HA, we believe the problem should be tackled by cost containment and identification of new revenues. In view of the heavy subsidisation for public health care services, fee adjustment alone cannot ease the HA's budget deficit. The Administration will consider different funding mechanisms to help the HA make ends meet.



Ends/Wednesday, February 23, 2005

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12 Apr 2019