Health concerns: Dzulkefly (second from right) with (from left) honorary secretary of APHM Anwar Anis, Dr Kuljit and deputy president of APHM Chin Keat Chyuan after launching the APHM Fact Book in Kuala Lumpur.
KUALA LUMPUR: The Health Minister has urged private healthcare facilities to take more decisive action to control the escalating cost of medical treatment, which have risen sharply in recent years.
Datuk Seri Dr Dzulkefly Ahmad expressed concern over Malaysia’s medical inflation rate, currently standing at 12.5%, more than double the global average.
“While there are some controls on doctors’ fees, it is alarming how hospital charges have increased,” Dzulkefly said during the launch of the Association of Private Hospitals Malaysia (APHM) Fact Book.
“The impact on the rakyat is substantial, necessitating further discussions to ensure that private healthcare services are priced more reasonably.”
Previously, Bank Negara Malaysia had stated that Malaysia recorded a medical cost inflation rate of 12.6% last year, surpassing the global average of 5.6%.
Despite these concerns, Dzulkefly acknowledged the valuable contributions of private healthcare facilities, particularly during the Covid-19 pandemic, when they served as immunisation centres and eased the burden on public hospitals.
“These partnerships extend beyond secondary and tertiary services, including pre-hospital care, ambulatory services and primary care,” he added, highlighting the importance of Public-Private Partnerships in driving healthcare reform in Malaysia.
At a press conference, the minister encouraged individuals in higher income brackets to obtain health insurance.
“I believe that out-of-pocket expenditures can contribute to inflation.
“Therefore, we encourage upper-middle-income earners and the T20s or T15s to consider health insurance,” he told reporters yesterday.
Discussing potential solutions to medical inflation, Dzulkefly noted that the Diagnostic-Related Group (DRG) payment scheme, which has yet to be put into place, was a “way forward”.
“It is still a work in progress. Whether it’s DRG or in fact moving into Case-Mix Group (CRG), I think we would be in a better position to mitigate and handle medical inflation,” he said.
The DRG system categorises patients with similar clinical diagnoses to better manage hospital costs, while the CRG tool aims to enhance care efficiency and quality.
When contacted, APHM president Datuk Dr Kuljit Singh noted that while private hospitals strive to keep costs low, they face challenges balancing affordability with financial viability.
“Healthcare inflation is inevitable due to various factors, including rising technology and operational expenses.
“Striking this balance is crucial to maintain access to quality care without compromising services,” he told The Star.
Dr Kuljit said a study by APHM revealed that the standard rate of inflation for private healthcare in Malaysia mirrored that of global trends.
“For instance, APHM highlights that while prices may rise due to technological enhancements, the core healthcare costs, without these added factors, align closely with international benchmarks,” he said.
He added that the healthcare inflation rate often did not account for the costs of new technologies, such as robotic surgery, which have become more common in Malaysia.
“These innovations improve patient outcomes and care quality, but the associated costs are often labelled as medical inflation,” he explained.
“The same applies to new and innovative drugs. These have a direct benefit to patient outcomes, and the quality of care, but added cost is unavoidable.”
