Rental Space for Clinic in Bidadari District Costs S$18,000 Monthly under New Quality-Based Tender Agreement
New Pricing Model for GP Clinics in Singapore's Public Housing Estates Lowers Rental Costs and Improves Quality of Care
A new approach for general practitioner (GP) clinics in Singapore's public housing projects, known as the Price Quality Method (PQM), has significantly lowered rental rates compared to traditional tender methods. This shift is aimed at improving the quality of care provided to residents.
Under the PQM, tender proposals are evaluated with a 70% weight on quality and 30% on price. This contrasts with the traditional method, which focused primarily on the highest tender price for rental. For instance, the first clinic tender awarded under PQM for a 100 sqm clinic in Bidadari went to BridgePoint Health at a monthly rent of S$18,000, translating to about S$180 per sqm. This is notably lower than past GP clinic tenders in new housing projects from 2022 to 2024, which averaged S$382 per sqm.
The larger clinic space and the emphasis on quality allow the clinic to provide more comprehensive services on-site, minimizing referrals and facilitating integrated, seamless care for residents. PQM seeks to encourage GP clinics to support chronic disease management and align with Healthier SG initiatives.
Here's a comparison between the traditional tender method and the new PQM:
| Aspect | Traditional Tender Method | Price Quality Method (PQM) | |---------------------|--------------------------------------------------|-------------------------------------------------| | Evaluation Criteria | Primarily highest rental bid | 70% Quality, 30% Price | | Rental Rates | Higher (e.g., S$52,188/month; S$382/sqm average) | Lower (e.g., S$18,000/month; S$180/sqm in Bidadari) | | Clinic Size | Typically smaller | Larger clinics promoting more on-site services | | Quality of Care | Less emphasized | Strong emphasis, aiming for better chronic disease management and seamless integrated care |
Health Minister Ong Ye Kung expressed dismay at a healthcare company's unusually high rental bid for a clinic in a HDB estate in Tampines in June. He stated that higher rental bids do not necessarily translate to the best healthcare that the community needs.
The government plans to use PQM for more tenders in 2025, reflecting a shift to balance affordability and quality healthcare access in HDB estates. This method supports better long-term health outcomes for residents without the extreme rental costs seen previously.
The tender at Bartley Beacon is the first under the new approach for GP clinics at a new public housing project in Bidadari estate. The awarded monthly rent for the tender at Bartley Beacon works out to S$180 per sq m.
- The Price Quality Method (PQM) in Singapore's public housing projects not only lowers rental costs for general practitioner (GP) clinics but also prioritizes quality of care, aligning with Healthier SG initiatives to encourage GP clinics to support chronic disease management and integrate seamless care for residents.
- In contrast to the traditional tender method, the PQM method evaluates proposals with a 70% weight on quality and 30% on price, leading to lower rental rates like the first clinic tender in Bidadari at S$18,000 per month, translating to S$180 per sqm.
- With healthier financing options for GP clinics through the PQM, investors may find opportunities in real-estate development centered around community health and wellness, as the government plans to extend this method for more tenders in 2025, focusing on balancing affordability and quality healthcare access in HDB estates.
