--- title: "A second non-profit private hospital will be established locally. Analysts: It may affect healthcare pricing in the long term | Lianhe Zaobao" type: "News" locale: "en" url: "https://longbridge.com/en/news/282348470.md" description: "The government will build a second non-profit private hospital in the east, providing low-cost medical options. Analysts believe that the short-term impact on existing medical groups will be limited, but it may affect the industry's pricing structure in the long term. The new hospital will not distribute profits, focusing on cost-effectiveness and providing affordable medical services. Currently, there is only Anwei Niyanshan Hospital locally. Analysts point out that the new hospital will be positioned as a low-cost alternative rather than competing with high-end hospitals, with approximately 300 to 400 beds, and the overall supply will not surge" datetime: "2026-04-10T12:57:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282348470.md) - [en](https://longbridge.com/en/news/282348470.md) - [zh-HK](https://longbridge.com/zh-HK/news/282348470.md) --- # A second non-profit private hospital will be established locally. Analysts: It may affect healthcare pricing in the long term | Lianhe Zaobao The government announces the construction of the second non-profit private hospital in the east to provide citizens with lower-cost private medical options. Analysts expect that this will have limited impact on existing local medical groups in the short term, but in the long run, the increase in low-cost non-profit hospitals may gradually affect the overall pricing structure of the industry. The upcoming hospital will be the second non-profit private hospital in the area, meaning its profits will not be distributed to shareholders but reinvested in hospital development or used for charitable and other non-profit purposes. The hospital will also need to focus more on cost-effectiveness and provide more affordable medical services. Currently, the only similar hospital in the area is Mount Alvernia Hospital. FSM Global's research and portfolio management analyst Pan Zhechuan stated in an interview with Lianhe Zaobao that the new hospital is not expected to have a substantial impact on the operational performance of IHH Healthcare and Raffles Medical Group in the short to medium term. He said, "The new hospital adopts a non-profit model, limits medical costs, and uses a fixed-price land bidding mechanism. The policy focus is clearly on affordability and cost control, so it is more likely to be positioned as a low-cost private medical alternative rather than directly competing with high-end private hospitals." He added that the new hospital will have about 300 to 400 beds, which will not lead to a surge in supply within the overall healthcare system, while demand continues to be supported by an aging population and higher medical usage rates, providing a structural growth foundation. He believes that the two listed medical groups have strong defensive capabilities overall. Among them, IHH operates in multiple markets including Malaysia, India, and Turkey, with diversified revenue sources. Although Raffles Medical is highly dependent on the Singapore market, it adopts an integrated model of clinics, hospitals, and insurance, and through internal referrals and stable repeat visit demand, it still has a certain degree of risk resistance. #### Further Reading The second non-profit private hospital planned in the east aims to narrow the gap between public and private medical costs \[The only non-profit private hospital in the area, Mount Alvernia Hospital, is committed to maintaining the "mid-range price" !\[\](https://dss0.zbstatic5.com/s3fs-public/styles/article\_small\_crop/public/articles/2026/04/09/20260409519209413z8a2029\_0.jpg? The research report from DBS Bank also pointed out that the new hospital primarily targets price-sensitive groups, which is different from the positioning of high-end private hospitals like Elizabeth Hospital and Eagle's Nest Hospital. However, the Bay East Hospital, which is also under IHH, located in the east and positioned as mid-range, may face more direct competitive pressure. The report emphasizes that even if Bay East Hospital is affected, the overall impact on the group will still be limited, as the hospital only accounts for 143 of IHH's approximately 793 beds in Singapore, and the group's profits come from multiple markets, with diversification advantages helping to dilute the related impact. Galaxy International Securities analyst Zheng Weiquan stated in an interview that this news will not have a substantial impact on the existing two medical groups in the short term. Referring to the construction timeline of Elizabeth Novena Hospital, which completed land bidding in 2008 and commenced operations in 2012, it is expected that the new hospital may not be operational until around 2031. ### Long-term Impact on Medical Industry Pricing Structure However, in the long term, Pan Zhechuan believes that the construction of non-profit hospitals may gradually affect the industry's pricing structure. "The increase in low-cost private hospitals may gradually influence the price expectations of patients and insurance companies, thereby limiting the overall pricing power of the industry to some extent." In addition to the impact on the medical industry, he added that the new hospital will also bring direct benefits to the construction companies that win the bids, while having a slight positive impact on insurance companies. "Since the new hospital emphasizes controlling medical costs, it is expected to slow down the rate of increase in medical costs, which is one of the main pressures faced by the insurance industry, and this will help stabilize and improve profitability." ## Related News & Research - [Orthocell Secures Access to 221 US Military & VA Medical Centres for Remplir](https://longbridge.com/en/news/282772740.md) - [National Healthcare Properties Announces Launch of Public Offering | NHPAP Stock News](https://longbridge.com/en/news/282531927.md) - [ZAWYA: Saudi German Health named among TIME and Statista’s Arabia Growth Leaders 2026](https://longbridge.com/en/news/282964099.md) - [Black Book Research Releases Poland State of Digital Healthcare IT 2026 Market Report](https://longbridge.com/en/news/282534342.md) - [Aliya Rahman Files Complaint Against DHS, Sets Stage For Federal Lawsuit](https://longbridge.com/en/news/283037203.md)