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Saturday, October 12, 2024

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Private Hospitals Consider Exiting Thailand’s Social Security System

Private hospitals in Thailand are weighing the possibility of withdrawing from the Social Security system due to financial pressures. These institutions report that the number of insured individuals has surged, while the per capita reimbursement rate has nearly been cut in half. Concerns have also been raised by the Consumer Council, noting that the benefits provided under the Social Security program lag behind those of other schemes, such as the Universal Coverage Scheme (Gold Card) and the Civil Servant Medical Benefits Scheme.

In response to the growing concerns, Labour Minister Phipat Ratchakitprakarn has instructed relevant authorities to address the issue with urgency. Minister Phipat acknowledged the financial strain on private hospitals and indicated that ongoing discussions with the Private Hospital Association are aimed at revising reimbursement rates, particularly for high-cost inpatient care. The Social Security Office (SSO) has been tasked with reviewing the financial structure to ensure that private hospitals can remain in the program without suffering undue financial burdens.

Minister Phipat emphasized that government funding must be sufficient to support the sustainability of private hospitals within the system. He suggested that the annual cost per insured person, set at 12,000 baht, should be maintained consistently throughout the year. The Ministry of Labour is monitoring the situation closely to prevent further hospital withdrawals.

The Social Security Office reported that in 2024, 24.67 million individuals were insured under various sections of the Social Security program. Of this group, 11.83 million were insured under Section 33, which covers employees; 1.88 million under Section 39 for former employees continuing their contributions; and 10.96 million under Section 40, which includes self-employed and informal workers. Healthcare services for these individuals are currently provided by 267 medical facilities, including 170 public hospitals and 97 private hospitals—a slight increase from the 260 facilities in 2023.

However, despite the increase in healthcare facilities, a trend has emerged where large hospitals are opting out of the Social Security system, being replaced by smaller institutions. The growing insured population, coupled with rising medical costs and shrinking reimbursement rates, has created financial stress for private hospitals, prompting several to consider leaving the program.

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