Kuala lumpur: The Health Ministry (MoH) is currently reviewing the licensing and regulatory processes under the Private Healthcare Facilities and Services Act 1998 (Act 586) in response to industry concerns about delays and rising operational costs.

According to BERNAMA News Agency, Health Minister Datuk Seri Dr Dzulkefly Ahmad stated that the initiative aims to streamline procedures, addressing complaints that the lengthy processes contribute to higher costs which are eventually passed on to patients. This matter was deliberated during a Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) meeting, which included Finance Minister II Amir Hamzah Azizan, representatives from Bank Negara Malaysia (BNM), and chief executive officers of private hospitals.

Dr Dzulkefly revealed in a Facebook post that MoH has invited private hospitals to partner as Tier 1 providers for the Medical and Health Insurance/Takaful (MHIT) base plan. This partnership is set to be part of a pilot program launching in the Greater Klang Valley starting in July. The initiative aims to phase in Diagnosis-Related Groups (DRGs) for payments at Tier 1 providers by January 2027, promoting a shift towards value-based healthcare that focuses on health outcomes.

He emphasized the importance of digital health as a critical enabler, proposing the integration of public and private systems under a data governance framework that ensures individuals control their data. The MoH has also extended invitations to join the Malaysia Digital Health Certification Network (MDHCN) and to collaborate in sharing radiology imaging to avoid duplicate tests and reduce costs.

Dr Dzulkefly highlighted the complementary roles of public and private sectors in expanding access and choice for healthcare services. He noted that the ongoing transformation in health financing sets a national benchmark, aiming for a Whole System Transformation beyond just addressing private sector medical inflation.