Private hospital plan takes shape in Singapore amidst public hospital overload

The government will add 300 to 400 beds across private hospitals in the east.

Singapore will release a land parcel in the eastern region for a new 300- to 400-bed not-for-profit private acute hospital, marking the first private hospital land tender in nearly two decades, according to Ong Ye Kung, Minister for Health.

The government intends to proceed with the tender in the second half of 2026, subject to final decisions.

The Ministry of Health (MOH) will structure the tender using a fixed-price land model, where bidders compete on care models, cost efficiency, manpower development, and affordability commitments rather than land price.

MOH said it will also impose bill size restrictions to ensure the hospital does not lead market pricing.

The move comes as private hospitals operate at about half capacity, whilst public hospitals exceed 90% occupancy and handle about 90% of inpatient cases, despite accounting for about 80% of hospital beds.

Around 40% of residents hold private hospital insurance, but many still seek treatment in public hospitals due to cost considerations and clinical needs.

Ong said rising private hospital charges and insurance structures have contributed to patient movement towards the public sector, adding that insurance riders have become overly generous, encouraging higher utilisation and higher costs.

The government has tightened insurance rider requirements to focus coverage on large hospital bills rather than smaller claims covered by deductibles and MediSave, with the changes taking effect earlier this month.

Ong said the cost gap between subsidised public wards and private hospitals has widened, creating a steep pricing difference for similar procedures.

He said the last land tender for a private hospital was in 2008, which led to the development of Mount Elizabeth Novena Hospital.

He added that experience has made MOH cautious about further private hospital expansion.

Ong said the government wants to encourage lower-cost private hospitals, citing Mount Alvernia Hospital as an example of a not-for-profit acute private hospital that exerts competitive pressure on public healthcare.

MOH said it has received feedback from potential operators, donors, and philanthropists and is continuing consultations on the proposal.