KUALA LUMPUR – The Association of Private Hospitals Malaysia (APHM) has welcomed cost control proposals for the private healthcare sector raised by Prime Minister Datuk Seri Anwar Ibrahim in Parliament yesterday.
Stressing that APHM advocates for effective solutions through transparent dialogues among key stakeholders, association president Datuk Dr Kuljit Singh assured that private hospitals will cooperate with government initiatives.
“In the weeks ahead, private hospitals will work closely with stakeholders from sectors such as insurance and pharmaceuticals as well as Bank Negara Malaysia (BNM) and the Health Ministry to create practical treatment cost models that deliver true value.”
“This process must be grounded in comprehensive data rather than relying on isolated case studies that often overlook broader systemic issues,” he said in a statement today.
He also highlighted that private hospitals, which employ over 45,000 individuals, had contributed approximately RM6 billion to the nation’s gross domestic product last year while also facilitating collaborations with the pharmaceuticals and healthcare tourism industry.
Noting that high technology adaptation, including digitalisation costs, and the pricing of medical supplies have significantly contributed to financial pressures on the private healthcare sector, Kuljit expressed confidence that an equilibrium can be achieved between cost containment and healthcare innovation.
Such an equilibrium, he said, will ensure a sustainable environment that continues to attract investments and drive business growth.
“As we adapt to regulated cost structures, it is crucial to emphasise that a strong and innovative private healthcare sector is essential not just for economic growth, but also for ensuring high-quality healthcare for the Malaysian population.
“Maintaining this balance will enhance patient outcomes and support the nation’s overall health and economic wellbeing,” he said, adding the nation’s optimistic view of Putrajaya’s proposal to introduce controls on Diagnosis-Related Groups (DRG).
Kuljit said the implementation of DRG, which is currently an unregulated system for classifying hospital patients into groups based on their clinical conditions as well as treatment needs and costs, necessitates a solid grasp of relevant data to evaluate its efficacy.
Yesterday, Anwar told the Dewan Rakyat that the Health Ministry has been instructed to implement DRG regulations on an immediate basis, with the control hoped to be in place by “early next year”.
The prime minister also said that Malaysia will be cancelling its commitments to “one or two” companies involved in drug procurement processes as part of the Health Ministry’s move to secure cheaper and more affordable generic drugs.
Anwar said this in response to Pulai MP Suhaizan Kaiat’s query on the short-term measures that the government can undertake to address the excessive increase of health insurance premiums.
Insurance and takaful operators, as well as BNM, have cited rising medical costs, an increasing number of insurance claims or greater utilisation of policies, as among the reasons for raising premiums.
Anwar, however, said it is “very difficult” for the government to accept drastic hikes in private healthcare and insurance premiums. – December 11, 2024
