BANGI: Big changes are coming to how Malaysia pays for healthcare.
The Health Ministry is set to launch Phase 1 of a new Diagnosis-Related Group (DRG) payment system this year, starting with low-complexity conditions.
Health Minister said this isn’t a copy-paste from the US or others.
“We’re building a Malaysian DRG model.”
The DRG system groups patients based on diagnosis and treatment, enabling more efficient hospital billing and resource use.
It’s already in place in many countries—and now, Malaysia is gearing up for its own version.
At the heart of the plan: a home-grown grouper—a classification system tailored to local disease patterns, healthcare needs and economic realities.
The Health Ministry is currently holding intensive sessions with key stakeholders—including the Finance Ministry, Bank Negara, insurers, private hospitals and IT experts—to finalise the framework.
“It’s a massive, system-wide effort. Everyone is at the table—from policymakers to health tech players,” Dr Dzulkefly said.
The rollout will begin with so-called “international translational diseases”—lower-complexity conditions that are easier to standardise—before expanding to more complex cases.
“Start simple. Learn fast. Scale smart. That’s our game plan,” he added.
Talks began in March 2024, and the ministry is racing to kick off implementation by year-end, in line with the Madani government’s healthcare reform push.
DRG is expected to bring greater billing transparency, better hospital efficiency, and smarter resource use—critical steps toward easing pressure on the public healthcare system.
“This is more than just a payment tweak—it’s a structural shift towards a smarter, fairer, more sustainable healthcare model,” Dr Dzulkefly said.
The announcement came alongside updates on the MyGenom project, another bold move to transform Malaysian healthcare through genomics and personalised medicine.
