‘Medication, tech costs driving private hospital inflation’


PETALING JAYA: Amid debate over rising charges on hospital supplies and services (HSS), the Association of Private Hospitals Malaysia says that they have “no control over costs related to medication, medical equipment and emerging technologies like electronic medical records and artificial intelligence”.

“This is made worse by the unfavourable currency exchange rates. As a result, we have to absorb these costs, which are ultimately passed on to the patient in the final bill,” said association president Datuk Dr Kuljit Singh.

The bills issued by private hospitals reflect the comprehensive costs incurred in providing medical treatment.

He said that regulating the prices of such medical equipment must be approached realistically and studied thoroughly to determine if it could lead to companies discontinuing the supply of the latest medical innovations to Malaysia.

It is essential that regional markets be analysed for comparison to determine whether costs can be lowered sufficiently to remain competitive, he said.

“A comprehensive study is necessary to understand the dynamics at play,” he said when contacted.

Dr Kuljit said the Malaysian healthcare system is facing inflationary pressures, which are affecting public healthcare as well.

“Moreover, there is limited recourse available to mitigate these effects as we do not have local industries producing healthcare products such as medical equipment and medications.”

He said Malaysia should consider investing in the development of its own pharmaceutical products and medical equipment in the future.

“Such a strategic move could enhance independence and contribute to a more sustainable health­care ecosystem,” Dr Kuljit said.

The increasing number of patients and insurance claims, he pointed out, is largely driving the rise in medical inflation in the country.

“While private hospitals’ profitability is often scrutinised, factors contributing to rising healthcare costs, such as inflation, are frequently overlooked.”

“This reality is not fully understood by many, but it highlights the challenges we face in the healthcare sector.”

Such a trend, he said, is not unique to Malaysia, as many countries are experiencing similar increases in medical expenses.

Dr Kuljit said the association is committed to ensuring the affordability of treatment costs, using strategies including transparency in drug prices.

However, he said it is important that such a move is carried out wisely without compromising on the care given to patients.

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