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Malaysia's Ministry of Health explores adoption of Diagnostic Related Groups - P4H Network

Malaysia’s Ministry of Health explores adoption of Diagnostic Related Groups

Malaysia’s Health Minister has announced that Ministry of Health is exploring the adoption of the Diagnostic Related Groups (DRG) payment system in private hospitals to address rising healthcare costs.
According to The Edge Malaysia, as reported by Syafiqah Salim, Malaysia’s Health Minister Datuk Seri Dr. Dzulkefly Ahmad stated that Ministry of Health has begun exploring the adoption of the DRG payment system.

“It is still a work in progress. I have spoken to my medical adviser, Tan Sri Abu Bakar Suleiman, and we are really looking into it,” the Health Minister said.

The DRG payment categorizes patients based on the complexity of their cases to determine the cost of treatment, rather than itemizing individual services. The initiative aims to curb escalating hospital expenses in the private healthcare sector.

The article added that the Minister emphasized the importance of ongoing discussions to make private healthcare services more affordable and reasonable. He also urged private hospitals to manage their pricing structures for the benefit of the population.

In addition, he opposed the Bank Negera Malaysia’s decision requiring insurers and takaful operations to introduce co-payment in all new health and medical insurance products of at least mininum 5% of the claimable expense, arguing that it would transfer financial burden on patients.

Reference