Circular No. 09/BYT-TT guiding the establishment, management, and use of reward funds and support funds extracted from part of the hospital fee revenue.

CIRCULAR

Guidelines for establishing, managing, and using the reward fund and support fund extracted from part of hospital fees

The Ministry of Health issued Circular No. 10/BYT-TT on May 9, 1996, guiding the establishment, management, and use of the reward fund and support fund extracted from part of hospital fees at hospitals. After nearly one year of implementing this circular, there are some issues that need to be more specifically guided regarding the sources for establishing the funds and managing and using the reward fund and support fund extracted from part of hospital fees. Therefore, the Ministry of Health reissues guidelines for establishing, managing, and using the reward fund and support fund extracted from part of hospital fees as follows:

1. In accordance with Section 2 Part V of the Joint Circular of the Ministry of Health, Ministry of Finance, Ministry of Labor, Invalids and Social Affairs, and the State Price Control Board No. 14/TT-LB dated September 30, 1995, healthcare facilities, ministries, sectors, and provincial health departments are allowed to extract 30% of the revenue from part of hospital fees, including hospital fees paid by health insurance agencies for patients with health insurance cards (hereinafter referred to as hospital fees), to establish the reward fund and support fund.

I. GENERAL PRINCIPLES:

- The reward fund is established at healthcare facilities to reward staff who demonstrate high responsibility, complete their professional tasks well, and serve patients attentively.

- The support fund is established at ministries, sectors, and provincial health departments (hereinafter collectively referred to as the supervisory authority) to adjust and support healthcare facilities without the conditions to collect part of hospital fees and to reward units, groups, and individuals with outstanding achievements in health care and people's health protection work.

2. The source for establishing the reward fund and support fund is extracted from part of hospital fees.

3. The supervisory authority bases on the framework of the percentage for establishing each fund specified in Section 2 Part V of the Joint Circular No. 14/TT-LB dated September 30, 1995, to specify the percentage (%) transferred to the supervisory authority to establish the support fund and the percentage (%) retained to establish the reward fund for each healthcare facility.

- The Ministry of Health specifies for healthcare facilities under its jurisdiction - Provincial health departments specify for healthcare facilities managed by localities.

- Ministries and sectors in charge specify for healthcare facilities under their jurisdiction.

II. ESTABLISHING, DISTRIBUTING, AND USING THE REWARD FUND

       1. Quarterly, healthcare facilities implement the extraction of the reward fund from part of hospital fees; the amount extracted is based on the total hospital fees collected during the quarter and the percentage (%) permitted to be extracted as stipulated by the supervisory authority.

2. The reward fund extracted from part of hospital fees as stipulated in point 1 above shall be used as follows:

- 70% is allocated for rewarding staff of the unit based on working days and the degree of completion of professional tasks, service attitude towards patients, and evaluated and awarded according to levels A, B, and C.

- 20% is allocated for the Director of the unit to reward outstanding groups and individuals with exceptional achievements, high sense of responsibility, and attentive service to patients.

- 10% is allocated for the movement of competition activities within the unit; if not fully utilized by the end of the year, this portion will be supplemented to the rewards for staff of the unit during holidays and festivals.

Based on the above allocation ratios, the Director of the unit establishes the reward regulations of the unit, which must be approved by the workers' congress; the award examination regulation serves as the legal basis for employees of the unit to inspect and supervise the implementation of awards by the Director; the award examination regulations of each unit must be established according to the following main contents:

+ Good spirit and attitude in serving patients.

+ Strictly adhering to hospital professional systems with good quality and high working days.

+ Good organizational discipline awareness.

III. ESTABLISHING AND USING THE SUPPORT FUND AT SUPERVISORY AUTHORITIES:

The support fund established at supervisory authorities is formed from the revenue from part of hospital fees transferred by healthcare facilities according to the regulations of the supervisory authority.

1. Quarterly, along with the establishment of the reward fund, healthcare facilities must calculate and transfer a certain percentage (%) of the hospital fees collected to the supervisory authority as stipulated to establish the support fund:

- Healthcare facilities under the Ministry of Health transfer to the Ministry of Health.

- Healthcare facilities managed by localities transfer to the provincial health department.

- Healthcare facilities under ministries and sectors transfer to the respective ministries and sectors.

2. The ratio and specific amount that healthcare facilities must transfer to the supervisory authority to establish the support fund are determined as follows:

a. The percentage (%) that the healthcare facility must transfer to the supervisory authority equals 30% minus the percentage (%) that the healthcare facility is allowed to extract for the reward fund as stipulated by the supervisory authority.

b. The specific amount that the healthcare facility must transfer to the supervisory authority is calculated by multiplying the total actual hospital fees collected by the percentage (%) that the healthcare facility must transfer to the supervisory authority as calculated in point a above.

Example: Hospital A, according to the final report, has collected a total of 200,000,000 VND in hospital fees; According to the regulations of the supervisory authority, Hospital A is allowed to extract 25% to establish and use the reward fund at the hospital, then Hospital A must transfer to the supervisory authority to establish the support fund as follows:

- The percentage (%) that Hospital A must transfer: 30% - 25% = 5%

- The total amount to be transferred: 200,000,000 VND x 5% = 10,000,000 VND.

3. The support fund transferred by hospitals to the supervisory authority shall be used as follows:

- 80% is allocated to adjust and support units within the healthcare sector that do not have the conditions to collect part of hospital fees or are truly in difficult situations requiring financial support from higher levels.

Units receiving financial support must manage, use, and award as stipulated in Section 2 Part II of this circular.

- 20% is reserved for the Minister, Director of the Provincial Health Department to reward and support units, groups, and individuals with outstanding achievements in health management, care, and protection of people's health.

- Twenty percent for the Minister, Department of Health Director to commend and support units, collectives, and individuals with achievements in the work of managing, caring for, and protecting public health.

IV. IMPLEMENTATION

1. The use and expenditure of the award fund and support fund must be strictly monitored and supervised, with complete, accurate, and timely record-keeping. All award and support expenditures shall be accounted for in accordance with the accounting regulations for public health institutions issued by the Minister of Finance through Decision No. 999 TC/QĐ/CĐKT dated November 2, 1996, and Decision No. 144/BYT-QĐ dated January 31, 1997, by the Minister of Health.

2. Medical and healthcare facilities under direct management must report to their supervisory authorities on the implementation of hospital fee collection, the allocation and utilization of the award fund, and the submission of funds to their supervisory authorities for the establishment of the support fund. Annually, Ministries, sectors, and Provincial Health Departments must compile the situation regarding hospital fee collection, the allocation and utilization of the award fund, and welfare funds of subordinate units and report to the Ministry of Health.

3. The Director of the Financial Accounting Department is responsible for guiding and inspecting the implementation of this Circular.3. The name of Clause 3 of Article 22 is amended and supplemented as follows:

This Circular takes effect from the date of signature and replaces Circular No. 10/BYT-TT dated August 9, 1996. During its implementation, if there are difficulties or obstacles, units and localities should promptly reflect them to the Ministry of Health (Financial Accounting Department) for study and appropriate amendments.

DEPUTY MINISTER

MINISTER

                                                                                                                                (Signed)

TRAN THI TRUNG CHIEN