KUALA LUMPUR: The rising cost of medical care in Malaysia is a concerning trend that highlights significant challenges within the healthcare sector.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said much of this inflation is driven by out-of-pocket payments and a lack of pre-paid or pooled health financing.
"This issue affects not only the private healthcare sector but also has a direct impact on the public health system," he stated in a parliamentary written reply to Hassan Abdul Karim (PH-Pasir Gudang).
Medical cost inflation refers to the continuous rise in prices for healthcare services, medications, routine check-ups, and other treatments. This increase is fueled by various factors, including higher production costs for medical equipment, increased demand for healthcare services, and a general rise in living costs.
According to a 2023 report from Bank Negara Malaysia (BNM), Malaysia recorded medical inflation at 12.6 percent, significantly higher than the global average of 5.6 percent.
Dzulkefly emphasised that while this inflation directly affects private healthcare costs, the Health Ministry is genuinely concerned about public apprehensions.
"This challenge is not unique to Malaysia; it is a global issue faced by many countries. The ministry recognises the urgent need for holistic and innovative solutions to effectively tackle this problem," he explained.
To empower the public to make informed choices, the ministry encourages price transparency in the private healthcare sector.
"This transparency will allow individuals to compare options and make better decisions about the healthcare services they need," he added.
"The ministry also underscores the importance of value-based healthcare, which prioritises improving health outcomes over merely paying for services."
He mentioned that through ongoing outsourcing services, the ministry is implementing a strategic purchasing approach aimed at encouraging the private sector to offer services with lower profit margins while increasing patient volumes.
Dr Dzulkefly explained that this approach aims to ensure higher quality care at reduced costs for the public.
Additionally, he noted that the ministry is seriously addressing social determinants of health (SDH), which directly influence population health.
"These determinants are crucial in managing the rise of non-communicable diseases (NCDs) such as diabetes, hypertension, and heart disease."
To promote healthier lifestyles, the government has launched several initiatives, including a war on sugar, a sugar tax, and a front-of-pack nutrition labeling system to inform the public about sugar and salt content in food products.
"In addition to enforcing tobacco-related laws, efforts are underway to enhance public health literacy. These initiatives aim to raise health awareness and promote healthy lifestyle choices," he said.