PETALING JAYA: Reforming the private healthcare system to make it more affordable and sustainable presents numerous challenges, from narrow profit margins to widespread misunderstandings about healthcare costs.
However, a more sustainable path could lie in enhancing the public healthcare system and fostering accessibility and equity for all citizens. This approach avoids imposing restrictive measures on private healthcare, that might deter investments crucial to the sector’s survival.
Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh said private hospitals offer healthcare services to patients who choose to seek care independently, operating on a fee-for-service basis without taxpayer funding.
This model, he said, is voluntary and non-mandatory, similar to private educational institutions and other private entities. He added that private healthcare in Malaysia has always been a choice for patients, never mandated by law or the sole healthcare provider.
“Private hospitals in Malaysia exhibit profit margins of 7-11% after tax, which islower than many other business sectors, including other businesses related to healthcare such as insurance, pharmaceutical, and devices, according to a recent study published in the Fact Book by the Association of Private Hospitals Malaysia.
“Further reductions in these margins are deemed unsustainable, potentially deterring further investment in private healthcare,” Dr Kuljit said.
Meanwhile, the complexity of insurance plans generates confusion among consumers and obstructs the implementation of cohesive reforms, he noted.
Private hospitals are willing to collaborate with insurance companies under the guidance of Bank Negara Malaysia following a recent joint meeting to develop a tangible mechanism to address the issue of high costs, Dr Kuljit disclosed.
“The Private Health Facility Act clearly stipulates detailed itemised billing, which frequently leads to subjective disputes regarding costs due to a lack of understanding of healthcare expenses,” he added.
Moving on, Dr Kuljit said improving the public healthcare system offers a feasible approach to enhance accessibility and equity.
He said public healthcare models can efficiently deliver services to individuals unable to access private healthcare, ensuring comprehensive care for all citizens without imposing financial restrictions on private healthcare, which could hinder the growth and sustainability of private hospitals.
“Enhancing public healthcare systems requires increased funding, the expansion of preventative care, and the integration of services to ensure continuity of care. These measures can improve patient outcomes through strong public-private partnerships with private hospitals, accompanied by reasonable reimbursement rates.”
Dr Kuljit noted that many reimbursement packages in the public-private partnership currently fall below the cost of treatment, particularly for complex patient conditions referred to private hospitals.
He said private healthcare reform faces significant challenges due to widespread misunderstandings of healthcare costs among different societal groups, government stakeholders, parliamentarians, and various healthcare payors.
“Therefore, enhancing public healthcare presents a more sustainable and equitable solution for the entire population rather than reforming private healthcare,” he added.
