The state budget for subsidizing the health sector will be used to help poor people buy health insurance and the higher hospital fees will be paid by the medical insurance fund.
State budget subsidies to hospitals for wages, and asset and equipment depreciation will be cut. Health insurance will be paid to hospitals based on the level of health insurance card use. This will be the hospitals’ main funding source. Hospitals will have to improve their staff, services, and management so as to attract more patients in order to increase their revenues.
Nguyen Nam Lien Director of the Department of Finance Planning of the Ministry of Health says,“The decree aims to shift support for hospitals to health insurance card holders. Prices of health services are calculated on 3/7 of direct expenses excluding wages, depreciation, and expenditures for scientific research. That’s why the quality of health services is not high. The adjustment will enable hospitals to increase their revenues, pay wages, and improve their services”.
Nguyen Nam Lien says patients will also benefit from this adjustment: “The adjustment will not affect health insurance card holders. Poor people, social beneficiaries, children under 6, and ethnic minority people are provided with insurance cards by the State. Near-poor people receive 70% State support for buying insurance cards. The Ministry of Health has also set up special funds for critical patients with high treatment costs”.
The Health Insurance Fund will increase payments for 1,800 health services by 30%. The 25% of the population who have not bought health insurance will be affected by the adjustment when they are sick. It is hoped that the adjustment will encourage more people to buy health insurance.