Inflation, hospital.

"Thai medical inflation surges 15 times higher than economy."

Medical inflation in Thailand has reached about 10% per year, which is only 0.7% higher than the country's general inflation rate, which is 15 times the difference, mainly due to the cost of modern treatment technology, competition for medical personnel compensation, and the high price spread of medicines and pharmaceuticals in private hospitals. Health insurance premiums tend to rise as a result. Corrections require drug price control, the use of AI technology to reduce costs, and the increase in patient participation in the choice of treatment.

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1. The refinement between economic growth and medical costs

# 10 per year inflation

Thailand's current situation shows a serious imbalance between general inflation and medical inflation. While the Thai economy has an average growth of only 2% and general inflation is about 0.7%, medical costs have risen as high as 10% per year. In comparison, medical inflation has grown 15 times faster than the economy. Data from the Council suggests that this trend is not only in Thailand, but around the world, especially in the Asia-Pacific region, where the increase in medical costs is the highest, which directly affects the ability to access public health services with incomes that are not in line with the rapid rise in costs. Like this.

2. Cost burden on investment in advanced medical technology

# Private, modern equipment

One of the leading reasons for the increase in healthcare costs is the technology competition. Over 92% of private hospitals accelerate investment in modern medical equipment to become a global medical hub. New technologies such as robotic surgery or Targeted Therapy and proton radiation cost up to a million baht. Although these technologies increase treatment efficiency and reduce recovery time, huge costs from importing equipment and software royalties are passed on to patients in the form of medical fees and hospital fees, allowing low- and middle-income people to start accessing them. High-quality treatment has become more and more difficult.

3. Competition in medical personnel compensation

The cost structure of private hospitals is over 45%, the compensation of doctors and medical personnel. Medical care requires highly skilled specialists, creating a competition for doctors between the private and public sectors. Specialties in private hospitals earn many times more than public hospitals (about 1-3 lakh baht versus 5-8 thousand baht). This results in dementia and the need for doctors from the public sector to get extra jobs in the private sector for income suitable for the workload. This higher personnel cost burden is reflected in the increase in the cost of doctors (Doctor Fee) that patients have to pay, which is a difficult factor to control. Which, the demand for specialist physicians is still limited above the number available in the system.

4. Inflated price differentials for medicines and medical supplies

# Plus 20 times

Data from the Council shows the difference in drug and pharmaceutical prices between market costs and those charged by private hospitals alarmingly. For example, brine with a market price of only 45 baht but may be charged as high as 900 baht in some hospitals, or basic materials like rubber gloves and cotton bales with profit increases of hundreds of percent. Although private hospitals claim to have to make this profit up for fixed costs and other administrative arrangements, this unduly high price becomes a heavy burden for patients who do not have disbursement or do not have health insurance, drug and pharmaceutical price ceiling setting is an important proposition that the Council is trying to push to make a great deal of consumer fairness. Up in the future.

5. Chain impact to health insurance systems and premiums

# Healing more than necessary

Medical inflation directly affects the health insurance business. When medical costs rise, insurers need to increase their premiums to comply with Loss Ratio, which is predicted to hit 89% in 2026. There is also the issue of over-treatment. About 5% of insured groups claim insurance too often or do not need to sleep in hospital but ask for admitts. These behaviors result in most people in the system being burdened with more expensive premiums. The health insurance system is in a state of pressure to balance good coverage and premium control. Not so high that the public can't afford it.

6. Adaptive approaches and solutions to sustainability

In order for the Thai public health system to move forward without leaving anyone behind, the Council has proposed a number of solutions, such as the introduction of artificial intelligence (AI) to help analyze and treat to reduce human workload and increase accuracy, which may reduce long-term costs, standardization and ceiling control of medicines and pharmaceuticals to be more transparent, and encouraging patients to play a role in making treatment choices. Patients should have the right to inquire about more affordable but similar-effective treatment options to reduce unnecessary costs and make the management of the country's medical resources efficient and cover all populations equally.