KUALA LUMPUR: Delays in the implementation of the Diagnosis‑Related Group (DRG) payment system for private healthcare are to build capacity and gather data, says the Health Minister.
Datuk Seri Dr Dzulkefly Ahmad said it is not due to pressure from private hospital operators.
He said the government must ensure key components are in place before introducing a system to standardise billing and make it transparent and fair.
“There’s no need for assumptions or negative perceptions,” he said.
“What matters is implementing a good initiative effectively, with careful preparation and sound execution, so it achieves its purpose.”
“We need capacity building and adequate data sharing from private medical practitioners, and it is not about pressure from anyone.”
“When implementing a major reform like this, we must be meticulous to avoid adverse outcomes and ensure it delivers real value to the healthcare system,” he added.
Dzulkefly told the Dewan Rakyat this on Monday (Oct 13) in response to a question by Tan Kok Wai (PH–Cheras) on whether the delay was linked to lobbying by private hospital groups.
The rollout was initially slated for the end of this year.
In August, the ministry said the DRG system, developed over five years, is expected to launch in 2027.
The framework will standardise and make healthcare payments transparent so patients are not overcharged.
Billing will be based on defined categories such as diagnosis, procedure and complications.
The government previously said implementation would begin in phases by late 2025, starting with minor cases in public hospitals.
He said a key challenge is the tight timeline amid demand for affordable care and measures against medical cost inflation.
“We need comprehensive data because patient care standardisation relies on actual treatment data from private practitioners,” he said.
“Data sharing is essential in determining treatment rates or payments, not just averages but also consistency,” he added.
He said standardised datasets will feed a national DRG framework adapted to Malaysia, forming the Malaysian DRG system.
He said the need to strengthen human resources, as proper coding requires trained personnel to develop and manage the system.
