Regulations in the health care sector are meant to ensure patient safety and service quality. However, when excessive bureaucracy and overregulation come into play, it creates an unintended consequence—higher medical fees for patients.
The Credentialing, Licensing, and Accreditation Division (CKAPS) under the Ministry of Health (MOH) imposes numerous requirements on general practitioners (GPs) and private hospitals, which significantly impact operating costs.
This article explains why the more regulations CKAPS imposes, the more expensive private health care will become—ultimately burdening patients, businesses, and even MOH itself in the long run.
Compliance Costs Get Transferred to Patients
Each new regulation—whether for clinic licensing, equipment standards, accreditation, or facility requirements—translates into additional costs for health care providers. These costs do not disappear; instead, they are passed on to patients in the form of higher consultation fees, treatment charges, and hospitalisation bills.
For example:
- Mandatory Renovations and Upgrades: If new rules require structural changes to clinics or additional medical equipment, these capital expenditures are absorbed into higher patient fees.
- Additional Licensing and Inspection Fees: Every additional license or accreditation requirement means higher administrative costs that clinics and hospitals must recover through price increases.
- Staffing and Paperwork Burden: More regulatory paperwork means hiring more administrative staff, increasing operational costs that patients indirectly pay for.
Private Health Care Is Not A Government-Funded Service
Unlike public hospitals, which receive funding from the government, GP clinics and private hospitals operate as businesses. They are subject to market forces, inflation, and operational costs.
If CKAPS enforces excessive regulations without balancing the financial burden, private providers have only three choices:
- Increase prices: Raising consultation and treatment fees to sustain operations.
- Reduce services: Cutting down essential services or delaying investments in new medical technology.
- Exit the industry: Some GPs and small private hospitals may close down due to financial strain, reducing health care accessibility for Malaysians.
Private Sector Must Be Treated As A Health Care Partner, Not A Target
Private hospitals and GPs reduce the strain on public health care facilities. Instead of imposing layer upon layer of regulation, MOH should collaborate with private providers to create practical, cost-efficient policies.
What MOH should do:
- Streamline Licensing and Accreditation: Reduce unnecessary red tape that delays operations. One-stop licensing solutions instead of multiple fragmented approvals.
- Flexible Compliance Timelines: Allow gradual implementation of new regulations instead of sudden, costly changes.
- Consult Industry Leaders Before Implementing Rules: Policies should be data-driven and practical, not burdensome.
Malaysia’s Private Health Care Must Remain Competitive
Overregulation discourages investment in the health care industry, making it harder for Malaysia to compete with Singapore, Thailand, and Indonesia in medical tourism. If costs keep rising, patients may seek treatment abroad, causing an economic loss for Malaysia’s health care industry.
Conclusion: Regulations Should Enable, Not Suffocate, Private Health Care
The more unnecessary regulations CKAPS imposes, the more expensive health care will become for Malaysians. MOH must recognise that GP clinics and private hospitals are not bottomless revenue sources—they are partners in providing quality health care.
A balanced regulatory approach will ensure affordable health care for Malaysians, sustainable growth of private hospitals and GP clinics, and a reduced burden on government hospitals.
It’s time to shift the mindset from “Control & Restrict” to “Enable & Strengthen”. When regulations are practical, everyone wins—patients, doctors, hospitals, and MOH.
The author is the past president and founding president of the Association of Private Practitioners Sabah (APPS).
- This is the personal opinion of the writer or publication and does not necessarily represent the views of CodeBlue.
