Health Ministry aims to introduce DRG by end of 2025
KUALA LUMPUR: The Health Ministry hopes to implement the diagnosis-related group (DRG) payment model by the end of the year, says Minister Datuk Seri Dr Dzulkefly Ahmad.
Dr Dzulkefly stated that the proposed DRG scheme could start with a simple mechanism in its initial phase.
"Start with something simple, and after momentum is developed, move to a more complex system.
"I am confident we can start this," said Dr Dzulkefly after attending the opening ceremony of the 31st Association of Private Hospitals Malaysia (APHM) conference at the KL Convention Centre on Monday (June 9).
Dr Dzulkefly noted that Malaysia, particularly the APHM and the Finance Ministry, has experience in implementing the DRG.
"I am confident we will implement this by year's end," he added.
Dr Dzulkefly was responding to reports that the government postponed the DRG systems for private hospitals.
DRG is a payment system involving a predetermined amount decided by the group's payment model rather than paying for each service received.
Countries like Sweden, Canada, and Australia have implemented this system.
He responded to reports claiming the government's plans for the DRG system at private hospitals are on hold.
It was reported that the DRG would focus on simpler medical cases initially.
Earlier, during his opening speech, Dr Dzulkefly said introducing DRGs to pay for healthcare services, starting with base medical and health insurance/takaful (MHIT) products, will drive value-based healthcare.
"DRGs incentivise efficiency, which we expect will drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate strong cost-effectiveness in improving health outcomes while reducing total costs."
Meanwhile, Dr Dzulkefly said the Finance Ministry's GEAR-uP initiative will drive further investments in the health sector.
"These initiatives will be coordinated by a Joint Ministerial Committee, which will be announced shortly.
"I believe many in this room are well aware of this upcoming initiative," added Dr Dzulkefly.
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