Great Eastern Suspends Pre-Authorization for Mount Elizabeth Hospitals Amid Cost Concerns

On June 17, 2025, Great Eastern (GE), a leading insurer in Singapore, announced a temporary suspension of pre-authorization certificates for admissions to Mount Elizabeth Hospitals. This decision, communicated through a message to its panel doctors, stems from the insurer's concerns regarding significantly higher hospital charges at Mount Elizabeth and Mount Elizabeth Novena compared to other private healthcare facilities in the region. According to Great Eastern, the average hospital charges at these two hospitals have consistently exceeded those of comparable private hospitals for similar medical procedures and case profiles, impacting the affordability of insurance for its customers.

The pre-authorization process is a crucial aspect of healthcare insurance, where coverage for medical expenses is approved prior to hospitalization based on the insured individual's policy. By suspending this service for Mount Elizabeth facilities, Great Eastern aims to prioritize hospitals that deliver comparable care with greater transparency and cost-effectiveness. The insurer reassured patients that the clinical quality of care at Mount Elizabeth is not in question, allowing customers to still seek treatment at these facilities without any alteration to their existing benefits or claims processing.

In its statement, Great Eastern emphasized that this move aligns with its commitment to long-term sustainability and addressing the challenges posed by escalating healthcare costs. The insurer's decision highlights a growing trend among health insurers to evaluate the cost-effectiveness of medical facilities as a response to rising healthcare inflation.

Healthcare inflation has been a pressing issue in Singapore, with the Ministry of Health reporting that healthcare expenditures have increased significantly over the past decade. According to a 2023 report from the World Health Organization, Singapore's healthcare spending per capita rose by an average of 5% annually, prompting insurers like Great Eastern to reassess their operational strategies to maintain affordability for policyholders.

Healthcare analysts, such as Dr. Emily Wong, Senior Lecturer at the National University of Singapore's Lee Kuan Yew School of Public Policy, point out that such decisions by insurers may signal a shift in the healthcare landscape. "Insurers are increasingly incentivized to focus on value-based care models that emphasize quality and cost-efficiency. This move by Great Eastern may encourage other insurers to adopt similar practices," Dr. Wong stated in an interview.

Conversely, some industry experts express concerns that these changes could limit patient choices. Dr. Rajiv Malhotra, a healthcare economist at the National University of Singapore, argues that while cost considerations are vital, they should not compromise patient access to quality care. "There is a delicate balance that needs to be maintained between cost containment and ensuring that patients have access to a range of treatment options," he noted.

The suspension of pre-authorization for Mount Elizabeth Hospitals does not extend to other facilities operated by IHH Healthcare, including Gleneagles and Parkway East, which continue to provide full coverage under Great Eastern's insurance plans. This distinction highlights the insurer's focus on maintaining partnerships with hospitals that align with its cost-management strategies while still ensuring that customers receive the necessary medical care without interruption.

Moving forward, the implications of Great Eastern's decision may extend beyond immediate cost savings. In a broader context, this could influence how other insurers approach partnerships with healthcare providers and elevate discussions about healthcare costs within Singapore's ongoing efforts to balance quality and affordability. As the healthcare landscape evolves, stakeholders will be closely monitoring how such strategies will shape future insurance frameworks and patient care experiences.

In conclusion, Great Eastern's suspension of pre-authorization certificates for Mount Elizabeth Hospitals underscores a significant shift in the healthcare insurance sector, driven by the urgent need to address rising costs while ensuring that patients continue to receive high-quality medical care. The long-term effects of this decision on patient choices and healthcare accessibility remain to be seen, but it undoubtedly marks a pivotal moment in Singapore's healthcare narrative.