Private hospitals to send report on medical cost inflation to health ministry

PETALING JAYA: The Association of Private Hospitals Malaysia (APHM) says the findings of an independent study it commissioned on medical cost inflation will be presented to the health ministry next month.

The association said the study was aimed at identifying the key factors contributing to medical cost inflation in Malaysia, adding that it has continuously engaged with government ministries, agencies and policymakers to tackle the rising costs.

In a statement, it also said it has advised its member hospitals to implement more transparent policies on drug prices by April in line with the health ministry’s broader strategy to enhance cost containment within the healthcare sector.

“Private hospitals in Malaysia are resolutely dedicated to work with the health ministry to reduce the burden of patient care in Malaysia, as evidenced in private-public healthcare collaboration during the Covid-19 pandemic, and the outsourcing of selected treatment to private hospitals,” APHM said.

“Through ongoing efforts to balance quality, transparency, and affordability, we can together meet the diverse needs of patients while reinforcing Malaysia’s position as a leading destination in healthcare excellence.”

It said it hopes to see an evidence-based, long-term solution to address the issue of medical cost inflation in Malaysia.

According to Bank Negara Malaysia, the country recorded a 12.6% medical cost inflation rate in 2023, more than double the global average of 5.6% and an increase from 12% in 2022.