To: People’s Committees of provinces and centrally-affiliated cities (specified on the enclosed List)

Pursuant to the Joint Circular No.37/2015/TTLT-BYT-BTC dated October 29, 2015 on prices for medical examination and treatment covered by health insurances  (hereinafter referred to as “covered service”) provided by same level hospitals nationwide (hereinafter referred to as "Circular 37",the prices of covered services  shall be calculated by the following two-step itinerary:

Step 1:  The price which is inclusive of direct costs and specific allowances shall be applied as of March 01, 2016;

Step 2: The price which is inclusive of that in step 1 plus salary expense (hereinafter referred to as “step-2 price”) shall be applied as of July 01, 2016. The specific date of application to particular provinces shall be decided by the Ministry of Health.

Up to now, medical facilities nationwide have applied the covered service price calculated according to step 1. With regard to the step-2 price, the Ministry of Health, State Bank of Vietnam and General Statistics Office have completed the adjustments to costs of covered services and prediction of factors affecting consumer price index (CPI) and decided the appropriate adjustments under the Resolution No. 49/NQ-CP on the Government’s regular meeting in May 2016 and the Directive of the Deputy Minister- Mr. Vuong Dinh Hue at the Price Steering Committee’s meeting on May 23, 2016. There shall be 04 adjustments made in designated time (other than September) in about 15 -16 province/adjustment which makes the CPI vary approximately 0.4 to 0.6%/adjustment, equal to less than 2%  for 04 adjustments altogether. Pursuant to the Official Dispatch No.9796/BTC-HCSN dated July 15, 2016 by the Ministry of Finance, Official Dispatch No.5649/NHNN-DBTK dated July 25, 2016 by the State Bank of Vietnam and Official Dispatch No.468/TCTK-TKG dated July 05, 2016 by the General Statistics Office, and according to the market price in August 2016 and prediction f the market price in September 2016, the Ministry of Health hereby announces the date of application of step-2 prices of covered services as stipulated in clause 2, Article 5 of the Circular 37 as follows:

1. Medical facilities (both central and local level) located in 16 provinces in which the percentage of the insured is above 85% of the population shall apply the step-2 price which is inclusive of  salary  expenses prescribed in clause 2, Article 5 of the Circular No.37 as of August 12, 2016. (Refer to the enclosed list for details).

2. Medical facilities in other provinces (except for those prescribed in clause 3, Article 5 of the Circular No. 37 and those located in16 aforesaid provinces) shall continue to maintain the existing price which is inclusive of direct costs and specific allowances prescribed in clause 1, Article 5 of the Circular No. 37 until otherwise is announced by the Ministry of Health.

The step-2 price does not affect any beneficiary of incentive policies, the poor, children of the age under 06, ethnic minorities living in disadvantaged areas or residents of severely disadvantaged areas, islands or the near poor, etc. as the aforesaid entities have their health insurance cards granted or almost granted by the State, and the additional cost is mostly covered by the insurer. The step-2 price shall apply only to the insured; hence, it does not affect the non-insured. Therefore, the Ministry of Health shall request the People's Committees of aforesaid 16 provinces to:

- Inform and direct medical facilities within the province to apply the step-02 price as stipulated in the Circular No.37 of the Ministry of Health and Ministry of Finance and relevant documents.

- Disseminate the benefits of the adjustments to prices of covered services and direct medical facilities within the province to improve the quality of covered services  and adjust prices as stipulated in the Official Dispatch No.3893/BYT-KH-TC dated June 24, 2016 on the implementation of the Joint Circular No. 37/TTLT-BYT-BTC and the Official Dispatch No. 9913/BYT-KH-TC dated December 16, 2015 on the preparation for implementation of the Joint Circular on the prices of covered services administered by the same-level hospitals nationwide released by the Ministry of Health.

LIST OF PROVINCES APPLYING COVERED SERVICE PRICE WHICH IS INCLUSIVE OF SALARY EXPENSES AS OF AUGUST 12, 2016

(Enclosed with the Official Dispatch No.6188 dated August 12, 2016 by the Ministry of Health)

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