no more equitisation for Binh Dan Hospital

The pilot equitisation scheme of the HCM City-based Binh Dan Hospital, the first of its kind, officially stopped on June 21, 2007 and the city will consider the pilot equitisation plan of another hospital, announced HCM City Vice Chairman Nguyen Thanh Tai on the same day.



The official told VietNamNet reporters that the policy to socialise health care services was sound. The pilot equitisation plan of Binh Dan Hospital was approved by the government, aiming to better serve the people. However, there were many different opinions about this plan and since hospital equitisation is brand-new and the city needs more time to prepare for it, the HCM City People’s Committee decided to stop the Binh Dan Hospital equitisation plan.



However, Mr Tai affirmed that the policy to socialise health and education was unchanged and the city would select another hospital for equitisation. The city will continue to invest in Binh Dan hospital to better serve the people, especially the poor.

Several years ago, the Prime Minister asked the Ministry of Health to work on a semi-public investment proposal to improve services while still ensuring the accessibility of health care. The proposal called for the private sector to contribute funds to hospitals, which would have remained under state management and offered low hospital fees as well as low pay.

However, this was not attractive for investors as hospitals were still under the management of the state, and private investors were not enthusiastic about this semi-public model. Following this tepid response from the private sector, the Prime Minister decided last year to approve equitisation of state-owned hospitals. Binh Dan Hospital, with the strong endorsement of its board of directors, the health department and the Ministry of Health, was selected to be the first in the country to be equitised.

Public interest was high in buying shares of the hospital, which is recognised for its brand name and its services in urology and kidney and liver disease treatment. While equitisation documents were waiting for approval from the HCM City People's Committee, some people began to participate in the unofficial over-the-counter (OTC) market by buying state hospital employees' shares, which were offered at a low incentive rate. These state employees, typically, are financially unable to purchase shares, so they accept money from other investors and later transfer the ownership of the shares to them.

While health care officials continued to work hard on the equitisation process, the public, on the other hand, was concerned about health care services for the poor after equitisation, as the shareholders' desire to make a profit could leave the poor without care, and the loss of state assets during the asset evaluation process.
source:english.vietnamnet.vn