Proposal for ministry to oversee private hospital welcomed
PETALING JAYA: The Public Accounts Committee’s (PAC) proposal for the Health Ministry to regulate private hospital charges shows that market forces alone are unable to control escalating private healthcare costs, it was pointed out.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T. Saravanan said government action would actively protect consumers through effective regulation, failing which Malaysians would continuously suffer from rising medical costs.
He said the Health Ministry should regulate major cost components such as medicines, consumables, medical devices, room charges, diagnostic tests and hospital service fees, as these accounted for a significant portion of a patient’s final bill.
“Secondly, private hospitals should be required to publicly disclose and publish standardised pricing information for common procedures, treatments, medicines and services.
“Thirdly, any significant increase in hospital charges should be subject to regulatory review and supported by evidence-based cost justifications. Effective monitoring, auditing and enforcement mechanisms must be established,” he said.
Saravanan said patients were often vulnerable with little bargaining power, making regulatory intervention necessary to protect the public interest.
“Ultimately, stronger regulation will help restore public confidence that healthcare charges are fair and that patients are not being subjected to unreasonable costs during times of illness and vulnerability,” he said.
The Association of Private Hospitals Malaysia (APHM) said as a consultative member of the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), it backed the Health Ministry and Finance Ministry initiatives to address medical cost inflation.
It said this includes addressing key pain points highlighted in the PAC’s report, many of which were already being actively deliberated and addressed through JMCPHC.
“APHM continues to support broader efforts of the JMCPHC to manage rising healthcare costs by contributing industry data and providing constructive input to inform policy development.
“APHM remains committed to the best care for patients, and this includes working closely with the government at the national level through the JMCPHC to develop evidence-based, transparent, and sustainable solutions that ensure the long-term affordability and quality of healthcare in Malaysia,” it said in a statement.
Malaysian Medical Association (MMA) president Datuk Dr Thirunavukarasu Rajoo said the proposal provided an important opportunity to address factors contributing to increasing healthcare costs.
“MMA notes the PAC’s findings on billing practices that may affect patients, including unbundled charges and differences in pricing.
“Patients have the right to understand what they are paying for. Transparency is important in maintaining public trust in the healthcare system,” he said.
Dr Thirunavukarasu said the proposed Diagnosis-Related Group (DRG) model was intended to address hospital facility and service charges and did not involve doctors’ professional fees, which were regulated under the Private Healthcare Facilities and Services Act 1998 (Act 586).
“While the PAC report focuses on hospital and insurance costs, we should not lose sight of the importance of primary care.
“A strong primary care system helps detect disease early, manages chronic illnesses effectively and reduces avoidable hospital admissions,” he added.
On Wednesday, PAC chairman Datuk Mas Ermieyati Samsudin said the body found that medical inflation was mainly driven by escalating non-professional charges imposed by private hospitals that include medicines, medical supplies, laboratory tests, advanced medical technologies and rising hospital operating costs.
The committee also found that the absence of a standardised billing structure in private hospitals made it difficult for patients to determine the actual cost of services and basic items.
