PETALING JAYA: The diagnosis-related group (DRG) system is targeted to be rolled out by 2027, the Dewan Rakyat was told.
The Health Ministry said the Private Healthcare Facilities and Services Act 1998 (Act 586) is being reviewed to support the DRG’s implementation.
It explained that the DRG is among reforms to the health payment mechanisms at hospitals to curb private healthcare inflation.
The DRG, it said, will also establish a standard for treatment payment at hospitals and curb any cost increments.
“Our efforts will not be possible if ministries and agencies work in silos. A whole of government approach is crucial, while also taking into account stakeholders in the private sector as well as the rakyat,” it said in a written reply on Friday (July 22).
It said the ministry, together with Bank Negara and the Finance Ministry, has also introduced a RESET strategy as a strategic framework to tackle the increasing cost of healthcare and private insurance.
According to the ministry, RESET comprises five cores and 11 main initiatives.
This includes revamping medical and health insurance/takaful (MHIT), enhancing transparency, strengthening the digital health ecosystem, expanding cost effective options and transforming the provider payment mechanism.
“This strategy will prioritise the importance of value based healthcare while also balancing consumers ability and sustainable financing models,” it said, adding that among the initiatives here include developing DRG in the private sector, in phases.
The ministry was responding to a question by Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) who asked about the government’s strategies to control medical inflation and costs alongside reviewing Act 586 to avoid the increasing cost of private healthcare charges.
