Study finds huge difference in treatment costs

SATURDAY, MAY 23, 2015
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THE cost for treating five illnesses is about three times higher in private hospitals compared to prices charged by public hospitals, a study by a National Legislative Assembly (NLA) panel tasked with scrutinising hospital pricing has found. Results of th

The study found that some private hospitals charge from Bt50,000 to Bt200,000 for an appendectomy, compared to prices starting at Bt16,841 for the same surgery at public hospitals. 
A comparison between 2009 and 2014 found that treatment prices at private facilities had risen three to four-fold, while those at public hospitals had dropped by 4 to 5 per cent. 
Dr Sarana Boonbaichaiyapruck, a lecturer at Mahidol University’s Faculty of Medicine at Ramathibodi Hospital and a member of the panel, said on Thursday that after receiving public complaints about the high prices charged by private hospitals, the NLA tasked his panel with conducting a study and seeking possible solutions. 
The panel looked up how much treatment would cost for heart attack, appendectomy, knee and cataract surgery and for treating flu at three state hospitals – Rajavithi, Ramathibodi and Chulalongkorn hospitals in Bangkok. These figures were compared with those at six private hospitals, including those in suburbs, those backed by foundations and the so-called “medical hubs”, he said. 
As part of the study, 50 patients at each hospital were also interviewed to obtain an insight into how much people have to pay for treatment, and learned that: 
- Treatment for a heart attack costs between Bt89,376 and Bt158,680 at state hospitals, while prices for the same treatment at general private hospitals are between Bt164,870 and Bt422,058. “Five-star” facilities, though, could charge up to Bt1.15 million for treatment, which may possibly include balloon heart valve surgery or emergency operations;
- An appendectomy can cost between Bt16,841 and Bt42,631 at state hospitals, while at general private hospitals prices could run from Bt57,683 to Bt102,150. Five-star facilities, meanwhile, can charge up to Bt211,765, with treatment possibly including additional CT scan and treatments for complications;
- Cataract surgery goes for between Bt19,468 and Bt44,740 at state hospitals, while general private hospitals charge between Bt59,263 and Bt113,238, though some five-star places charge up to Bt656,030;
- Knee surgery at state hospitals costs between Bt115,990 and Bt170,244, while at general private hospitals it costs from Bt182,542 to Bt295,727, though some five-star places charge up to Bt536,416.
- Treatment for flu costs between Bt490 to Bt1,252 at state hospitals, from Bt1,712 to Bt3,050 at general private hospitals and up to Bt3,940 at five-star facilities.
Meanwhile, a lecturer with Chulalongkorn University’s Faculty of Pharmacy, said it was necessary to set up a mechanism to require pharmaceutical companies to reveal the actual cost of their medicines as part of an attempt to regulate prices charged by private hospitals. Then private hospitals can be allowed to charge patients based on the quality of their services, such as A-grade hospitals can charge 20 to 30 per cent more or B-grade ones can charge 10 to 20 per cent more, lecturer Suntharee Thor Chaisamritchoke said. 
A study into hospitals’ actual operating costs will also be necessary to set rates that are acceptable to both hospitals and patients, she said. The existing rule on the pricing of medicine, regulated by the Commerce Ministry, requires that private hospitals display the prices, she said. “However, this doesn’t work because pharmaceutical companies can cite whatever prices they want and hide the actual cost from the public,” she added.