Healthcare delivery based on outcomes, not services, mooted to tackle rising costs


KUALA LUMPUR: The Health Ministry has proposed a value-based delivery approach to address rising private healthcare costs.

Minister Datuk Seri Dr Dzulkefly Ahmad said this meant charges would be tailored towards health outcomes instead of the services provided.

“Under the fee-for-service outcome, someone with insurance coverage can undergo various tests and procedures with the total bill reflecting this.

“In value-based services, however, if a patient has a hernia and the hospital is efficient in treating this, they would only be charged for the procedure,” he said when winding up Budget 2025 debates for his ministry at the committee level on Tuesday (Nov 26) evening.

In his speech, Dzulkefly also said it is difficult to mitigate medical inflation unless private hospitals implement value-based charges.

However, he said the ministry does not have the authority to regulate costs charged by private facilities.

“We can only determine the consultation fees but the rest is (determined) by them, be it for medical procedures, consumables, medication and more.

“We don’t have authority over private health facilities,” he said.

The matter of private healthcare costs was raised by several MPs during the debates earlier Tuesday.

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