PUTRAJAYA: The Health Ministry is reviewing the licensing and regulatory processes under the Private Healthcare Facilities and Services Act 1998 (Act 586) to address industry concerns over delays and rising costs.
Minister Datuk Seri Dr Dzulkefly Ahmad (pic) said the move aims to streamline procedures, as lengthy processes have been cited as contributing to higher operational costs that are ultimately passed on to patients.
He said the matter was discussed during a Joint Ministerial Committee on Private Healthcare Costs meeting with Finance Minister II Datuk Seri Amir Hamzah Azizan, Bank Negara and private hospital CEOs, Bernama reported.
“We are reviewing Act 586 licensing and regulatory processes as we have heard industry concerns that it takes too long and adds to costs which are passed on to patients,” he said.
In a Facebook post, Dzulkefly said the ministry extended a time-sensitive invitation to all private hospitals to partner as Tier 1 providers for the Medical and Health Insurance/Takaful (MHIT) base plan and to participate in the pilot, which begins in stages in the Greater Klang Valley from July.
“Thank you, CEOs of private hospitals, for your commitment to submit the needed data expeditiously so that we can phase in Diagnosis-Related Groups (DRGs) for payments beginning January 2027 at Tier 1 providers in a data-driven and orderly manner.
“DRGs improve the transparency and predictability of pricing and facilitates a shift away from fee-for-service models towards value-based healthcare and a focus on health outcomes.
“Digital health is a critical enabler across the whole system, and we are ready to connect our public and private systems together, under a data governance framework that keeps the individual in control of their data,” Dzulkefly said.
The invitation is open to join the Malaysia Digital Health Certification Network and share radiology imaging, thereby avoiding duplicate tests and reducing costs.
“In our beloved country, the public and private sectors mutually complement each other, by widening access and choice.
“As the pace of health financing transformation accelerates, this truly whole-of-nation approach sets the benchmark, as we extend transformation beyond just private sector medical inflation to the whole system transformation,” Dzulkefly said.
