KUALA LUMPUR, Sept 20 — The Association of Private Hospitals Malaysia (APHM) has lent its “enthusiastic” backing to the proposed expansion of private wings in government hospitals under a new RakanKKM programme.
APHM president Dr Kuljit Singh noted that a significant number of middle class Malaysians in the M40 group are struggling to cope with rising health insurance premiums, attributed to a general increase in health care expenses that have led to bigger hospital bills in private hospitals.
“The M40 would be able to ‘co-pay’ for treatment in a public hospital that operates under a private-sector paradigm under the proposed plan,” Dr Kuljit said in a statement today.
“This method is designed to alleviate some of the burden on public financing, while also potentially reducing the issue of brain drain and increasing the earnings of public specialists.”
CodeBlue broke the story on the MOH’s plans to expand private wings, or the full-paying patient (FPP) service, in its hospitals under a new RakanKKM programme operated by a special-purpose vehicle (SPV), after Health Minister Dzulkefly Ahmad spoke about it at the World Cancer Congress (WCC) 2024 in Geneva, Switzerland, last Tuesday.
Dzulkefly posted on X yesterday that RakanKKM would be funded with investments from government-linked investment companies (GLICs) in a “cross-subsidising investment programme” to benefit not just patients, health care workers, or the MOH, but also GLICs.
Retirees in their mid-60s have complained about steep medical insurance premium hikes of up to 275 per cent. One noted that health insurance premiums remained “very high”, despite Bank Negara Malaysia’s (BNM) mandate of minimum 5 per cent copayments for all new health insurance products.
APHM, however, reminded the government about its “ethical responsibility” to provide services in public hospitals, funded by taxpayers, to the entire population, particularly the underprivileged.
“Currently, the demand for the resources of these public hospitals is overwhelming. In order to ascertain whether there is adequate spare capacity to accommodate FPP patients without compromising services for those with lesser income, a comprehensive assessment is required,” Dr Kuljit said.
“Although it is a promising approach to enable specialists to increase their income by treating FPP patients, it is crucial that these activities take place in designated private wings or distinct facilities.
“It is also necessary to implement rigorous monitoring to guarantee that the time specialists spend in private wings does not have a negative impact on their dedication to public health care.”
APHM told the MOH to ensure that service standards for non-private patients, including surgical schedules and outpatient appointment waiting times, remain unaffected.
“Neglecting to do so could result in substantial political obstacles and inherent inequities.”
APHM anticipates minimal competitive concerns with RakanKKM, expecting continued business from patients who can afford conventional private hospitals for advanced treatment.
“Although the private wings may generate revenue and attract specialists, they will also benefit from government-negotiated discounts on medications and equipment, rendering their services more affordable than those of private hospitals,” Dr Kuljit said.
“Nevertheless, this should not be employed as a price comparison mechanism with privately owned institutions, as the financial dynamics and procurement model are not supported by taxpayers in purely privately owned healthcare facilities.”
