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Govt to impose DRG payment model on public, private healthcare providers – Dzulkefly

KUALA LUMPUR: The implementation of the Diagnosis-Related Group (DRG) payment model will be imposed on both public and private healthcare providers, with particular emphasis on the private sector, said Health Minister Datuk Seri Dr Dzulkefly Ahmad.

He said this in response to claims that the DRG would only be applied to the public healthcare providers.

“This is about the most standardised, fair and equitable (framework), so of course, both public and private, particularly private, because we want to contain medical inflation in the private sector,“ he told reporters after a panel discussion at Bank Negara Malaysia’s Sasana Symposium 2025.

“However, the question of how and when the implementation would take place is beyond the Ministry of Health (MOH), as it involves…the MOH, the Ministry of Finance, Bank Negara Malaysia and other stakeholders,“ he added.

Earlier, Dzulkefly stated that the first phase of the DRG system, which focuses on minor illnesses in hospitals, is expected to be implemented by the end of this year.

The implementation aims to enhance transparency in patient treatment charges and address the rising cost of healthcare, a key factor contributing to the increase in medical insurance premiums.

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