KUALA LUMPUR, Feb 28 — Universiti Malaya Medical Centre’s (UMMC) recent fee hikes appear justified, as the hospital’s financial losses nearly doubled from RM33.4 million in 2021 to RM61.3 million in 2023, according to the latest Auditor-General’s (AG) Report.
The AG’s Report on federal agencies’ financial statements for 2023, tabled in Parliament on Monday, found that patient treatment charges were insufficient to cover UMMC’s operational costs.
UMMC revised its service fees on January 1 this year, citing rising costs of medical consumables and equipment. The revision marked the hospital’s first comprehensive fee adjustment since 2019, with increases ranging from 150 per cent to 233 per cent.
Key changes included a 233 per cent increase in the fee for follow-up specialist consultations (from RM15 to RM50), a 200 per cent rise for general clinic consultations (from RM5 to RM15), and a 167 per cent hike in specialist consultation fees (from RM30 to RM80). Ward admission in a single adult room increased by 150 per cent, from RM120 to RM300.
The AG’s Report listed UMMC as one of five federal agencies that recorded consecutive losses from 2021 to 2023. The others were Universiti Malaysia Sabah (UMS), Universiti Putra Malaysia (UPM), Universiti Sains Islam Malaysia (USIM), and the Solid Waste Management and Public Cleansing Corporation (SWCorp).
UMS registered the highest losses in 2023 at RM141.4 million, followed by UPM (RM127.7 million), SWCorp (RM53.9 million), and USIM (RM44 million). The report attributed the universities’ financial struggles to operational costs exceeding government grants and internally generated revenue, such as student fees. SWCorp’s losses were linked to increased expenditure on waste collection and public cleaning services.
To improve financial management, the AG recommended that federal agencies improve revenue generation efforts to reduce reliance on federal grants and optimise fund utilisation.
The report also suggested reviewing business plans of subsidiaries that have been unprofitable for three consecutive years and considering shutting down dormant entities inactive for over five years.
UMMC remains largely dependent on the Ministry of Higher Education (MOHE) for funding, receiving about RM476.8 million under Budget 2025.
At a Ministry of Health town hall last January 9, Prof Dr Maznah Dahlui, deputy dean (development) of Universiti Malaya’s Faculty of Medicine, suggested doubling UMMC’s funding following the university hospital’s fee hike. A 100 per cent increase would bring its allocation close to RM1 billion.
Former Health Minister Dr S. Subramaniam previously pointed out the disparity in government funding between university hospitals and Ministry of Health (MOH) hospitals. He noted that Kuala Lumpur Hospital (HKL), with around 2,300 beds, receives RM1.3 billion to RM1.5 billion annually—nearly three times more than a university hospital with over 1,600 beds, which gets around RM450 million to RM500 million.
