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Government reports on healthcare reform second stage public consultation and announces way forward
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     The Government today (July 11) released the healthcare reform second stage public consultation report, and announced the action plan for the coming two years to take forward the Health Protection Scheme (HPS), namely, formulating detailed proposals for setting up the HPS supervisory and institutional frameworks, conducting a strategic review on healthcare manpower planning and professional development, and facilitating healthcare services development.
 
     In his briefing to the Panel on Health Services of the Legislative Council today, the Secretary for Food and Health, Dr York Chow, summed up views conveyed to the bureau during the second stage public consultation on healthcare reform. A total of 564 submissions, both individuals and organisations, were received during the three-month consultation, which ended on January 7, 2011. Members of the public have expressed views and suggestions - many of which are constructive and useful - on the reform direction and details of the proposed HPS.

     "There was general support for the Government to continue to strengthen the public system as a core, while reforming the private healthcare market including private health insurance and private healthcare services.

     "Members of the public also supported regulating private health insurance and healthcare services through introducing the voluntary HPS to enhance market transparency and promote healthy competition, and strengthen protection to the public," he said.

     Having studied and analysed the views and suggestions received, Dr Chow said the Government would be guided by the following when taking forward the HPS:

* The Government's healthcare reform vision is that the public system will continue to be strengthened as the core, complemented by a competitive and transparent private sector providing high quality service as a choice to members of the public;

* As the insured population and private healthcare expenditure are increasing rapidly, there are calls in the community for strengthening supervision and regulation over private health insurance and healthcare services to address their current shortcomings and enhance the long-term sustainability of the private sector;

* There is public support for the Government to take forward the proposed HPS with the aim of providing value-for-money choices to members of the public, enhancing competition, transparency and efficiency of the private sector, and relieving pressure on the public sector so that it could better focus on serving its target areas, notably the poor and the disadvantaged;

* The Government will strengthen infrastructural support for the healthcare system to ensure sufficiency in terms of healthcare manpower supply and private healthcare service capacity, and also put in place an effective supervisory framework for achieving the objectives of the HPS;

* There is wide community support for the key HPS features, including an underwriting arrangement, portability among insurers, plan migration, standardised terms and conditions, and the high-risk pool proposal. The Government will further examine and deliberate in consultation with the relevant stakeholders to thrash out implementation details that are feasible, practicable and desirable; and

* The Government will strive to facilitate development of the healthcare service market prior to HPS implementation so that insurers and healthcare providers are better prepared and equipped to provide services that are in line with the principles and requirements of HPS.

     Furthermore, Dr Chow said, "We will adopt a three-pronged action plan in the coming two years to take forward healthcare reform and roll out the HPS step by step.
 
     "Firstly, we will set up a Working Group on HPS. It will formulate detailed proposals on the supervisory and institutional frameworks for the HPS, taking into account public views and other relevant considerations. The aim is to regulate, through an enabling legislation, private health insurance and private healthcare services under HPS to strengthen protection for the public through enhanced market transparency and greater competition.

     "Secondly, we will set up a high level steering committee to conduct a strategic review on healthcare manpower planning and professional development. It will formulate proposals on manpower planning and strengthening the professional standards and qualities of the various healthcare professions - including doctors, dentists, Chinese medical practitioners, nurses and allied health professionals - having regard to the known and projected healthcare needs of the community as well as the need for ensuring the long-term and sustainable development of our healthcare system.

     "Thirdly, we will facilitate the development of healthcare services and infrastructure. Measures include allocating land for private hospitals development; purchasing healthcare services from the private sector to improve and strengthen public healthcare services; as well as developing the supporting infrastructure for private health insurance and healthcare services.

      "We plan to complete the aforementioned preparatory works by the first half of 2013. We will then proceed to actual implementation of the proposals on healthcare manpower planning and professional development and those concerning the HPS, including introduction of the necessary legislative proposals."

     Dr Chow reiterated that HPS was intended to complement the public system, which will remain the cornerstone of the healthcare system. While taking forward healthcare reform, the Government's commitment to the public system would only increase, and not decrease. The Government would maintain and strengthen the public healthcare system, including its role as a healthcare safety net for the whole population. Healthcare recurrent expenditure, totalling $39.9 billion in 2011-12, now accounted for 16.5 per cent of the Government's recurrent expenditure, and was set to further increase as the Government has pledged to increase the ratio to 17 per cent by 2012.  

     The Food and Health Bureau published the consultation document entitled "My Health My Choice" on October 6 last year, under which a voluntary and government-regulated HPS with the aim of enhancing the long-term sustainability of the healthcare system was proposed for public consultation.

     Apart from consulting public views from different channels, the Food and Health Bureau has also commissioned independent consultants to conduct five rounds of public opinion surveys from November 2010 to April 2011 to gauge the views of the public on the principles and designs of HPS including its objectives, principles, concept and proposed features.

     The bureau has commissioned a market research consultant to conduct consumer market research on potential customers' reactions to the proposed design of private health insurance under HPS. The bureau has also commissioned an academic institution to conduct opinion surveys and focus group discussions to collect the views of the medical profession on specific issues.

     The consultation report including submissions and the results of the public survey are available on the Healthcare Reform Second Stage Public Consultation website (www.MyHealthMyChoice.gov.hk).

Ends/Monday, July 11, 2011
Issued at HKT 11:52

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