Hanoi tasks 36 local hospitals to become self-financed

Thirty-six hospitals under the management of the Hanoi Department of Health will become financially autonomous in 2023-2025.

A patient under treatment at Thanh Nhan Hospital in Hanoi. Photo: Hoang Huy/The Hanoi Times

Under a plan released by the Health Ministry last week, these 36 hospitals will be financially autonomous.

These health facilities will not receive subsidies or budget support from any public agency or Government.

The Hanoi Department of Health has asked the hospitals to restructure their management and operational apparatus, ensure cost-effective payroll, and improve the quality of services.

As a result, the department asked the 36 hospitals to increase revenue from healthcare services and reduce costs to improve their financial autonomy.

In addition, all targeted hospitals must disclose their financial statements to the Ministry of Health, the auditing company, and the Government inspection agency as required.

In 2023-2025, the hospitals will be required to submit their financial statements and financial autonomy reports as required.

The list of 36 hospitals includes Saint Paul General Hospital, Dong Da Hospital, Thanh Nhan Hospital, Duc Giang General Hospital, and specialized hospitals for eye, heart, lung, and cancer.

The Hanoi Health Department aims to transform 37 local health facilities from State-funded to financially autonomous, including 30 district-level medical centers and hospitals, six specialized centers such as the Center for Disease Control, the Forensic Center, and the Hanoi Rehabilitation Hospital.

According to Dao Xuan Co, director of Bach Mai Hospital, the biggest challenge for a financially autonomous hospital is raising enough revenue to cover its operating costs.

He said that most patients' medical services are paid for by health insurance, which means that income is not enough to cover expenses.