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Published on March 1, 2008

The concession was made at a meeting yesterday between the ministry, private hospitals, the Thai Pharmaceutical Manufacturers Association and the Thai Chamber of Commerce.

According to a survey by the ministry's Internal Trade Department, private hospitals increased service charges by 66 per cent from 2001 until last year, compared with only 11 per cent at government hospitals.

Department director-general Yanyong Phuangrach said the private hospitals had refused to commit to cutting fees.

"Private hospitals said they could give discounts and freeze drug prices to help consumers but they would be unable to give a commitment to the department on service charges," he said.

The hospitals said they had to charge higher fees as they received no financial support from the government while facing fierce competition to give patients the best service, he said.

However, they agreed to cut medicine prices for a while and will propose their plan for this to the ministry on Thursday.

Yanyong suggested cuts in the prices of vital medicines, such as those for heart disease, blood pressure and diabetes.

He said private hospitals enjoyed profit margins of 30-200 per cent on medicines while government hospitals made only 15-30 per cent.

The Internal Trade Department estimated the value of the country's medical drugs at Bt57 billion and that for hospital services at Bt140 billion, he said.

Petchanet Pratruangkrai

The Nation