‘Regulating private hospital rates may hurt industry’


PETALING JAYA: Private hospital bills will come under greater scrutiny when the Public Accounts Committee holds its first public hearing on Friday to hear concerns about healthcare costs.

These charges have raised the ire of Malaysians who decried what they deem as overcharging by private hospitals.

Association Private Hospitals Malaysia president Datuk Dr Kuljit Singh (pic) said private hospitals are prepared to work with the government and insurers to make their rates more affordable.

However, he maintained that private hospitals do not overcharge “except for a few isolated cases”.

“We can prove this if necessary. The government can carry out a scrutiny to ascertain if there are discrepancies in our charges,” he said in an interview prior to PAC’s announcement of the public hearing.

He said doctors’ fees are fixed by the government but other charges for drugs and the use of facilities may vary at private hospitals, depending on its location or services.

“Patients who feel that they have been overcharged should raise it with officers at the hospital. If the dispute is unresolved, they can take it up with the Health Ministry,” he said.

He emphasised that private hospitals in Malaysia are known for providing premium services but with the lowest rates in South-East Asia, making it the top choice in medical tourism.

A senior official of a private hospital, who did not want to be named, said critics of private healthcare are “missing the bigger picture”.

Firstly, he said the cost of healthcare is high whether at public or private hospitals.

“But since public healthcare is provided almost free in Malaysia, many people are unaware of the true costs,” he said.

So, he said only high-income patients (T20) will have the finances to seek treatment at a private hospital.

“Lower income groups or the B40 are unable to afford private healthcare, so they rely on government hospitals. It is the same with the majority of the middle-income group (M40),” he said.

However, the senior official pointed out that “a small fraction” of those from the higher rungs of M40, who have savings or perhaps medical insurance, will go to private hospitals.

“These are the patients who are often stumped by the charges. The outcry on the supposed high charges often come from these patients.

“Hence, if the government decides to further regulate private hospital rates, it will only benefit this small group of people,” he claimed, referring to those from the upper-middle class.

“This also means that the rich or top earners who can well afford the hospital charges will stand to gain (if the government controls hospital charges).”

Another private medical professional claimed that no other country regulates private hospital rates.

“Take our government schools as an example. They provide free education while private schools charge hefty fees. But do you try to regulate charges at private schools to make it accessible to all?” he asked.

“If rates are regulated, private hospitals will go bust and investors will pull out. How much lower can we go when our rates are already rock bottom?”

He said the Malaysian situation calls for a dire need of reforms in public healthcare sector to address issues involving manpower, drug supplies and the maintenance of medical equipment.

Otherwise, he said the limitations at government hospitals are driving some “desperate patients especially from M40” to opt for treatment at private hospitals.

He estimated that with 75% of patients in the country being treated at public healthcare centres, the limitations in these government facilities are denying those who should be promptly given urgent treatment due to the severity of their ailments.

“Issues at public hospitals are mounting with major manpower problems. It takes hours to see a doctor,” said the medical professional.

“The waiting list for surgeries or medical procedures can take months. More hospitals need to be built. Manpower must be increased and medical professionals must be remunerated fairly or they will jump to the private sector.”

He said there should be a pay structure in tandem with the volume of work that government doctors have to carry out.

Under Budget 2025, the Health Ministry is allocated RM45.27bil, which is the second highest among all.

“But is the sum sufficient to sustain and fund its services? The government has a responsibility to beef up services at public healthcare facilities as it is essential for the majority of patients,” he said.

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