Value-based healthcare
Medical advances: Dzulkefly (third from right) attending the APHM International Healthcare Conference and Exhibition at the Kuala Lumpur Convention Centre. — YAP CHEE HONG/The Star
KUALA LUMPUR: The introduction of basic medical and health insurance/takaful (MHIT) products will mark the first step in the implementation of the diagnosis-related group (DRG) payment model, says Health Minister Datuk Seri Dr Dzulkefly Ahmad.
He said MHIT products would steer private healthcare towards a value-based healthcare model with fairer rules for those with pre-existing conditions.
'Introducing DRGs to pay for healthcare services in phases, beginning with this base MHIT product, will be a key driver for value-based healthcare.
'DRGs incentivise efficiency and we expect this will drive innovations in ambulatory and day case surgery, and expand the use of health technologies, which will demonstrate strong cost effectiveness in improving health outcomes while reducing costs,' said Dzulkefly.
He added that the Health Ministry is working with the Finance Ministry, Bank Negara and the Employees Provident Fund (EPF) to transform private health insurance and takafuls by developing a base MHIT product.
Speaking during the launch of the Association of Private Hospitals Malaysia's (APHM) International Healthcare Conference and Exhibition 2025, he said the Health Ministry has made healthcare financing reform and digitalisation of healthcare services its priority.
'We are also exploring a more diversified health financing ecosystem that combines tax-based allocations, social contributions, employer-based schemes and targeted subsidies, all under a progressive and equitable framework,' he added.
Speaking to reporters after the launch, Dzulkefly said the Health Ministry is hoping to introduce the DRG payment model by the end of the year.
He said the proposed DRG scheme can start with a simple mechanism in its initial stage.
'Start simple first and after the momentum is developed, go for a complex one,' he added.
He also said that Malaysia, especially the APHM and Finance Ministry, have experience in implementing the DRG model.
DRG is a payment system that involves paying an amount predetermined by the DRG, instead of paying for each service received.
Other countries that have implemented this system include Sweden, Canada and Australia.
Dzulkefly was responding to news reports claiming that the government's plans to introduce the DRG system at private hospitals are being put on hold.
Commenting on a separate issue, he said the review of consultation fees for private general practitioners (GPs) has been raised to an executive task force chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Dzulkefly said that after a meeting between the Health Ministry and the National Action Council on Cost of Living (Naccol), it was decided that this issue should be raised to the task force led by Ahmad Zahid. Dzulkefly added that there are no deadlines for finalising the review of consultation fees for private GPs.
'No, but we will tackle this issue at the soonest time possible.
'The Deputy Prime Minister, who chairs the executive task force, will look into the final touches of this,' said Dr Dzulkefly.
On May 3, he had said the review of consultation fees for private GPs would be finalised within a month.
Yesterday, the Medical Practitioners Coalition Association of Malaysia (MPCAM) had proposed raising private GP fees to a minimum of RM50 and a maximum of RM80.
MPCAM had said GP consultation fees have stagnated between RM10 and RM35 for more than three decades since 1992.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
11 hours ago
- Barnama
NCCM 2025: MOH To Focus On Lung Health Prevention And AI
KUALA LUMPUR, June 20 (Bernama) -- The Ministry of Health (MOH) is entering the final phase of its National Strategic Plan for Cancer Control Programme 2021–2025, with a renewed focus on strengthening cancer prevention, early detection and sustainable financing. In this regard Health Minister Datuk Seri Dr. Dzulkefly Ahmad said the three-day National Cancer Congress Malaysia (NCCM) 2025, jointly organised by the National Cancer Society of Malaysia (NCSM) and Sunway University starting today, is aligned with the ministry's plan in charting the next chapter of the strategic plan for cancer which is more data-driven, inclusive and forward-looking approach. 'Cancer remains one of the most pressing and devastating challenges in our fight against the pandemic of Non-Communicable Diseases (NCDs). 'According to the National Cancer Registry Report 2017–2021, we now record over 169,000 reported cancer cases, an increase of 47 per cent from the previous cycle. The lifetime risk of cancer has also increased to one in eight Malaysians,' he said during his keynote address at the opening ceremony of NCCM 2025 themed 'Bridging Gaps, Building Hope, Empowering Lives', at Sunway University, Petaling Jaya, here today. Dzulkefly said in response to the rising threat of lung cancer, the ministry introduced the Lung Health Initiative during last year's NCCM which is currently among the top three most common cancers in Malaysia and a leading cause of death. He said Malaysia led the way on the global stage in cancer prevention and early detection with the adoption of the global resolution entitled Promoting and Prioritising an Integrated Lung Health Approach at the 78th World Health Assembly (WHA78), co-sponsored by 15 other WHO member states. 'This is a historic milestone not just for Malaysia, but for global public health. It reflects our belief in a whole-of-planet approach for lung health that integrates prevention, digital innovation, and people-centred care. 'Implementation is already underway, across six states namely Selangor, Penang, Kedah, Pahang, Kelantan and Sabah. Artificial Intelligence (AI) is now being utilised for chest X-rays in selected health clinics and government hospitals for interpretation, improving accuracy and accelerating early detection for lung cancer and other respiratory illnesses,' he said. Dzulkefly also commended National Cancer Society Malaysia (NCSM) for extending the effort through mobile AI X-ray units, which help screen underserved communities and workers in industrial settings.
New Straits Times
15 hours ago
- New Straits Times
Private hospitals back EPF plan for insurance payments, call for safeguards
KUALA LUMPUR: The Association of Private Hospitals Malaysia (APHM) has hailed the government's timely proposal to allow Employees Provident Fund (EPF) members to use their Account 2 savings to pay for monthly health insurance premiums. Its president, Datuk Dr Kuljit Singh, said while the plan is welcomed, it must be accompanied by clear safeguards to ensure its long-term sustainability. He said the responsibility now lies with the relevant agencies to determine the most appropriate funding model, whether through EPF or other mechanisms. "APHM fully supports the development of well-designed, evidence-based and data-driven policies, including the proposed basic MHIT (Medical and Health Insurance/Takaful) product. "Key stakeholders such as Bank Negara Malaysia, the Health Ministry, and the Finance Ministry will play pivotal roles in determining the best approach moving forward. "What matters most is that the mechanism serves the people effectively and remains financially viable in the long term," he told the NST. Dr Kuljit said APHM remains committed to working with all stakeholders to address challenges in healthcare financing and the rising cost of treatment. "Our member hospitals are ready to share data, insights, and industry expertise with the government to support policies that are both sustainable and beneficial to all Malaysians," he said. The government proposed the EPF plan to ease healthcare costs, widen insurance access, and relieve pressure on public hospitals. Health Minister Datuk Seri Dr Dzulkefly Ahmad said yesterday that if the proposal is implemented, 16 million EPF contributors could use their savings to access medical care at private hospitals.
New Straits Times
18 hours ago
- New Straits Times
Dzulkefly: EPF medical scheme will be optional, not mandatory
KUALA LUMPUR: The government's proposed health insurance scheme, to be funded through Account 2 of the Employees Provident Fund (EPF), will be voluntary and not mandatory, says Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said the initiative aims to offer EPF contributors the option of broader insurance coverage, as currently, 32 per cent of healthcare costs are paid out-of-pocket by patients without insurance protection. "Through this approach, the government hopes to expand access to faster, higher-quality private healthcare without increasing the financial burden on the people," he said in a Facebook post today. Dzulkefly said that the proposal drew inspiration from countries like Singapore, which prioritise insurance access for the majority of citizens. "It doesn't come out of their pockets. Only about 1 percent of Account 2 would be used to pay for insurance. This is the best way," he said. Yesterday, Dr Dzulkefly was reported as saying that the government is considering allowing Malaysians to use their EPF Account 2 to pay monthly health insurance premiums. If implemented, it would enable 16 million EPF members to utilise their contributions to access private hospital care. –Bernama
