10 Health Ministry hospitals in financial crisis, minister orders accounting audit
Public Health Minister orders accounting audit of 10 hospitals facing financial crisis, stressing only a few suffer recurring losses while the overall system remains stable.
- Ten hospitals under the Public Health Ministry are experiencing a severe (level 7) financial crisis, indicating critical liquidity problems.
- The Health Minister has ordered private accounting firms to conduct an audit of the struggling hospitals to review management efficiency, investments, and high fixed costs.
- The financial deficits are attributed to three main causes: operating in areas with low population density, receiving insufficient payments for services, and inefficient hospital management.
Public Health Minister Pattana Promphat said on Thursday that hospitals facing financial losses are often those serving smaller populations and therefore receive insufficient budget allocations to cover their operating costs. He added that capitation-based funding may also be inadequate, necessitating closer review.
He said he had discussed the matter with Dr Somruek Chungsaman, the ministry’s permanent secretary, and several solutions are being considered, including possible resource sharing between larger hospitals and those in sparsely populated areas.
“The overall healthcare structure remains strong,” Pattana affirmed. “Only a few hospitals with small populations or specialised treatment requirements may suffer occasional or continuous losses, but nationally and regionally, the system remains stable.”
According to Dr Somruek, the deficits stem from three key issues:
- Low population density: Some hospitals operate in areas with too few patients to offset their fixed costs. The ministry already allocates central funds to assist these hospitals.
- Insufficient service payments: Hospitals receive about 8,000 baht per case when actual service costs should range between 10,000–12,000 baht. If the payment falls to 7,000 baht, it would worsen the problem. Discussions with the National Health Security Office (NHSO) are underway to maintain the rate at 10,000 baht per AdjRW.
- Inefficient management: Personnel costs account for around 50% of total hospital expenses. Some directors also allocate budgets to non-productive areas, causing further losses.
Dr Somruek revealed that in the fourth quarter of fiscal year 2025, 10 hospitals were classified at financial crisis level 7, indicating severe liquidity problems. Some of these institutions have faced repeated financial troubles.
“The minister has ordered private accounting firms to conduct audits,” he said. “They will review management efficiency, assess whether investments are justified, and analyse if fixed costs are excessively high. Once completed, the findings will be presented and explained to hospital executives for corrective action.”
