PETALING JAYA: Medical groups have welcomed the Health Ministry’s new directive requiring all managed care organisations (MCOs) and third-party administrators (TPAs) in the private healthcare sector to submit essential information requested by the ministry.
Federation of Private Medical Practitioners’ Associations Malaysia president Dr Shanmuganathan Ganesan said the move was long overdue, noting that it would finally give regulators clearer visibility over the growing influence of MCOs and TPAs in private healthcare.
He said the obligation for these organisations to provide such information had long existed under the Private Healthcare Facilities and Services Act 1998 (Act 586).
However, he stressed that the directive must not become a mere administrative formality.
“While collecting such information is an important start, the ministry must analyse and act on it in accordance with Section 83 of the Act, which prohibits interference in clinical decision-making and protects professional autonomy.
“For years, unregulated TPA practices have affected general practitioners and restricted patient access to appropriate care,” he said.
Dr Shanmuganathan added that meaningful follow-through on the data collected was crucial to ensure it led to real enforcement, fairer practices and stronger protection for both practitioners and patients.
Association of Private Hospitals Malaysia president Datuk Dr Kuljit Singh also welcomed the directive, saying it would promote greater transparency and clearer communication within the private healthcare system.
He said the move was expected to improve administrative collaboration between hospitals, doctors and MCOs or TPAs, ultimately benefiting patients.
The directive comes amid growing concerns over the expanding role of MCOs and TPAs in influencing patient access to healthcare and payment decisions.
Under the directive, MCOs and TPAs must submit operational information to the Health Ministry as required under the Act.
The ministry said the aim was to tighten transparency, improve communication and strengthen oversight of how these companies function.
All submitted data will be entered into an official MCO register managed by the Health director-general to support better monitoring and accountability.
The ministry urged full cooperation and that compliance was crucial to ensure the private healthcare system continued to operate transparently and in public interest.
MCOs and TPAs are required to file the information by Jan 31, 2026.
