SMA: Profit guarantees prohibited under medical ethics guidelines

Singapore

THE Singapore Medical Association (SMA) says ethical guidelines for the medical profession prohibit profit guarantees involving healthcare services as the financial imperative they impose is incompatible with the guidelines.

The reminder could be a major hurdle for healthcare companies and doctors entering into merger or acquisition deals as the latter often include a profit guarantee from the party being acquired.

Already, Catalist-listed Singapore Medical Group (SMG) is relooking the specific term in its proposed acquisiti…