Guidance on setting prices of on-demand healthcare services in Vietnam from October 17, 2024

Guidance on setting prices of on-demand healthcare services in Vietnam from October 17, 2024 (Internet image)

Guidance on setting prices of on-demand healthcare services in Vietnam from October 17, 2024

On October 17, 2024, the Minister of Health promulgated Circular 21/2024/TT-BYT regulating the methods for pricing healthcare services in Vietnam.

In particular, Article 10 of Circular 21/2024/TT-BYT outlines the basis for setting up n-demand healthcare services in Vietnam as follows:

(1) Develop various pricing levels for healthcare services upon request at different medical facilities based on specialist discipline, service timing, expertise level of the service providers, care and treatment staff; infrastructure conditions and level of care; quality and quantity of technical services.

(2) In case of arising costs that have not been integrated into the service price: the unit may apply a cost method to determine and propose the price for healthcare services, specifically:

- If costs arise due to employing additional domestic personnel (aside from permanent staff in the unit, section operating services upon request) or foreign personnel: fees including personnel hiring fees under contract and costs for accommodation, travel, hiring translators, interpreters, and other reasonable and legitimate costs related to personnel hiring based on the agreement and consent of the service user can be included in the service price;

- If the unit provides healthcare services at home, additional reasonable and legitimate costs related to executing the service may be included.

Regulations on Selecting the methods for pricing

(1) The cost method is applied for pricing healthcare services when price-determining factors can be identified.

(2) The comparative method is applied for pricing when the valuation requires collecting information from at least three other service providers for comparison. The selection and collection of information for comparative services are stipulated in Article 4 of Circular 21/2024/TT-BYT.

(3) Based on practical conditions, the head of the agency, organization, or unit drafting the pricing plan (hereinafter referred to as the pricing plan preparatory unit) decides whether to apply one of the two pricing methodologies stipulated in (1) and (2) to develop the pricing plan.

(4) In cases where both pricing methodologies for healthcare services can be applied simultaneously, the head of the pricing plan preparatory unit is prioritized to choose the comparative method when it meets the conditions specified in (2).

(Article 2 of Circular 21/2024/TT-BYT)

Expenses not calculated into reasonable, legitimate costs for setting healthcare service prices in Vietnam

As stipulated in Clause 3, Article 1 of Circular 21/2024/TT-BYT, expenses that cannot be calculated into reasonable, legitimate costs for determining healthcare service prices in Vietnam include:

- Expenses not calculated into reasonable, legitimate costs for determining healthcare service prices as prescribed by the current regulations on non-deductible expenses for taxable income determination or expenses not included in service cost-price formation as per relevant legal documents;

- Costs already ensured by the state budget according to legal regulations, including specific allowances:

+ Preferential allowances, attraction allowances, subsidies, and other incentives for health officials, public employees, contract workers, and military-medical staff directly performing professional health tasks at state medical institutions in areas with exceptionally difficult socio-economic conditions;

+ Attraction allowances, long-term service allowances, certain subsidies, and travel reimbursements for officials, public employees, and salaried individuals in armed forces (people’s army and people’s police) working in areas with exceptionally difficult socio-economic conditions;

+ Special allowances for officials, public employees working at Huu Nghi Hospital, Thong Nhat Hospital, C Da Nang Hospital under the Ministry of Health, Central Health Protection Departments 1, 2, 2B, 3, and 5, Department A11 of hospitals under the Ministry of Defense;

+ Special allowance policies by profession or tasks.

- Costs already factored into other healthcare service pricing

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