Housing estate patients face higher clinic fees
Patients who attend doctors' clinics at public estates may face higher fees after four medical groups agreed to pay market rentals for more than 300 clinics at premises operated by The Link Management.
Agreement on rent was part of a deal reached between The Link and the four groups, which had objected to rent rises and relocation requirements imposed by The Link on some estate clinics.
The Hong Kong Medical Association, which took a lead role in the month-long negotiation with The Link, said it accepted market-level rents but that rents should be assessed by an independent party.
The other three medical groups were the Hong Kong Dental Association, Practising Estate Doctors' Association and the Association of Licentiates of the Medical Council of Hong Kong.
Dr Choi Kin, a main negotiator with The Link, said rent rises at estate clinics would mean higher medical fees for patients. 'Doctors will have no other option but to raise consultation fees,' he said.
Dr Choi Wai-wan, a spokesman with the Practising Estate Doctors' Association, agreed. The association, with 150 members who run clinics at housing estates, has seen at least 10 members close their businesses and four move out of estates because of the new rents.
'I think the consultation fee at estate clinics will go up by 10 per cent or more after rents reach market levels,' said Choi, adding that clinic doctors were also facing financial pressure from drug price rises.
According to the agreement, The Link will also be required to give estate doctors six months' notice of lease termination. Doctors may also hire professionals to assess rental values. When no agreement is reached one month before the lease expiry, the clinic in question will go up for open tender for use as a medical or dental clinic.
The Link agreed to extend current clinic leases from three years to up to six years if doctors renovate them.
The two parties agreed to hold meetings every two to three months.
Ian Robins, chief executive officer of The Link Management, described it as 'a win-win' agreement.
'Doctor and dental services operating in our properties form a crucial part of our medical care system,' he said. 'We recognise the importance of their services.'
At present, there are up to 400 doctors running clinics at public housing estates. Most enjoy rents below HK$20,000 for a 400 sq ft to 500 sq ft place in estate shopping centres and their average consultation fees range between HK$150 and HK$170, about 10 per cent cheaper than in other areas.
The Link real estate investment trust purchased around 180 shopping centres, fresh food markets and car parks at public housing estates from the Housing Authority in 2005.
The Link Management, operator of The Link's assets, has since renovated many of its premises and charged tenants higher rents. One such case involved a housing estate doctor in Tin Shui Wai whose rent leapt from HK$15,000 to HK$60,000 earlier this year.
Despite the agreement announced by the four medical groups yesterday, the Hong Kong Doctors' Union, which says it has some 200 housing estate doctor members, vowed to stick to its plan to strike next Thursday in a bid to get The Link to reduce rents.
Dr Henry Yeung Chiu-fat, president of the union, said the latest talks between doctors and The Link Management had made no breakthrough because the issue of high rents remained unresolved.
'I am afraid that big medical chain groups will take advantage of the market rent policy and open tenders to get into the estate medical market. These profit-oriented groups may provide less-than-satisfactory services with higher charges,' he said.
