Health Ministry aims to introduce DRG by end of 2025
KUALA LUMPUR: The Health Ministry hopes to implement the diagnosis-related group (DRG) payment model by the end of the year, says Minister Datuk Seri Dr Dzulkefly Ahmad.
Dr Dzulkefly stated that the proposed DRG scheme could start with a simple mechanism in its initial phase.
"Start with something simple, and after momentum is developed, move to a more complex system.
"I am confident we can start this," said Dr Dzulkefly after attending the opening ceremony of the 31st Association of Private Hospitals Malaysia (APHM) conference at the KL Convention Centre on Monday (June 9).
Dr Dzulkefly noted that Malaysia, particularly the APHM and the Finance Ministry, has experience in implementing the DRG.
"I am confident we will implement this by year's end," he added.
Dr Dzulkefly was responding to reports that the government postponed the DRG systems for private hospitals.
DRG is a payment system involving a predetermined amount decided by the group's payment model rather than paying for each service received.
Countries like Sweden, Canada, and Australia have implemented this system.
He responded to reports claiming the government's plans for the DRG system at private hospitals are on hold.
It was reported that the DRG would focus on simpler medical cases initially.
Earlier, during his opening speech, Dr Dzulkefly said introducing DRGs to pay for healthcare services, starting with base medical and health insurance/takaful (MHIT) products, will drive value-based healthcare.
"DRGs incentivise efficiency, which we expect will drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate strong cost-effectiveness in improving health outcomes while reducing total costs."
Meanwhile, Dr Dzulkefly said the Finance Ministry's GEAR-uP initiative will drive further investments in the health sector.
"These initiatives will be coordinated by a Joint Ministerial Committee, which will be announced shortly.
"I believe many in this room are well aware of this upcoming initiative," added Dr Dzulkefly.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
an hour ago
- Free Malaysia Today
Involve nurses in duty roster to lower burnout, say private hospitals
The Malayan Nurses Union said nurses in public hospitals were already under immense pressure and that an increase in working hours will exacerbate this. PETALING JAYA : The Association of Private Hospitals Malaysia (APHM) has offered its insights on preventing nurses from burning out, as the health ministry moves to implement a 45-hour work week for ward nurses in government hospitals from Aug 1. APHM said private hospitals had structured schedules designed to ensure both effective patient care and staff wellbeing, with nurses typically working between 42 to 45 hours a week, depending on unit and service needs. APHM president Dr Kuljit Singh said the private healthcare sector also involved nurses in scheduling decisions, adding that studies have shown this improved job satisfaction and lowered the burnout rate. Kuljit said private hospitals set up their schedules to ensure 24-hour coverage while allowing nurses adequate rest and time off, as well as accommodating their shift preferences and input into the roster. 'These hours are not arbitrary mandates, but are carefully crafted based on departmental demands, patient acuity and workload to ensure nurses are neither overworked nor underutilised,' he said in a statement. While government hospitals have higher patient loads, Kuljit said they had a significantly larger pool of nursing staff than private hospitals. This comes after the health ministry was given a 'final' two-month extension for the implementation of the 45-hour work week for ward nurses. The Malayan Nurses Union (MNU) protested the decision, saying nurses in public hospitals were already under immense pressure and that an increase in hours will make matters worse. 'In the government sector, nurses work on rotating shifts, that is morning, evening, and night, and the roster is not fixed,' MNU president Saaidah Athman told FMT. 'Schedules often change and sometimes, even when they are on official leave, nurses are called back to work based on the needs of the unit.' Despite the larger pool of nurses in public hospitals, Saaidah said many were already taking on extra duties without additional support, with some even forced to delay going to the toilet because of the number of tasks. 'When on double duty, they assist in patient transfers, support procedures, managing documentation, providing medications, and following doctors on rounds. Sometimes they end up working up to 14 hours a day. 'If a single shift becomes eight hours, double duty becomes 16 hours. There's no shift allowance, no meal allowance, no transport allowance. How can nurses not feel burned out?'
Free Malaysia Today
an hour ago
- Free Malaysia Today
Private hospitals to supply clinical data for diagnosis pricing system
The Association of Private Hospitals Malaysia pointed out that the process of gathering and analysing clinical data is complex and time-consuming. (Envato Elements pic) PETALING JAYA : Members of the Association of Private Hospitals Malaysia (APHM) have offered to share with the health and finance ministries relevant clinical data for the implementation of the diagnosis-related group (DRG) pricing system. In a statement, APHM said for the DRG or any DRG-type mechanism to work, accurate clinical data and a national electronic health record system was needed. 'As the process of gathering and analysing such data is complex and time-consuming, APHM anticipates that a proper rollout will require considerably more than six months. 'To support this national initiative, APHM member hospitals have offered to share relevant clinical data required for the set up of a DRG system with the ministries,' it said. The association added that adequate time and resources must be allocated to ensure that the DRG initiative is thoroughly conceptualised, piloted, and implemented, to ultimately deliver sustainable improvements for all Malaysians. Earlier today, health minister Dzulkefly Ahmad said the DRG pricing system – to standardise the costs for certain groups of patients according to their ailments and encourages cost containment initiatives – would be a key driver for value-based healthcare. The initiative, targeted to be rolled out by the end of the year, aims to provide fairer pricing for those with pre-existing conditions, especially with Malaysia becoming an ageing nation where the prevalence of non-communicable diseases (NCD) is high. According to Dzulkefly, the government's introduction of a basic medical and health insurance and takaful (MHIT) product marks the first step in the phased implementation of the DRG pricing system. He said the product would broaden private sector financing options and steer private healthcare towards a value-based healthcare model.
![[UPDATED] Malaysia's health spending jumps 4 times in 20 years](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2FDzulkefly_Ahmadwe_1749435876.jpg&w=3840&q=100)
![[UPDATED] Malaysia's health spending jumps 4 times in 20 years](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
an hour ago
- New Straits Times
[UPDATED] Malaysia's health spending jumps 4 times in 20 years
KUALA LUMPUR: Malaysia's per capita health expenditure nearly quadrupled between 2000 and 2020. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the figure surged from RM600 in 2000 to RM1,600 in 2020, driven by rising demand for healthcare and advances in medical technology. "Private sources accounted for RM40 billion, or 47 per cent, of total health expenditure in 2024. "Out-of-pocket spending remains high, at around 36 per cent of total health expenditure. "Our vision is to sustainably expand fiscal space while ensuring healthcare remains accessible, high-quality, and equitable," he said at the launch of the 31st Association of Private Hospitals Malaysia (APHM) International Healthcare Conference & Exhibition 2025, here, today. Dzulkefly said the Health Ministry was working with the Finance Ministry, Bank Negara Malaysia (BNM), and the Employees Provident Fund (EPF) to develop a health insurance and takaful product. This product will support the rollout of the new Diagnosis-Related Groups (DRGs) system, which aims to transform the way healthcare services are paid for. He also dismissed speculation of a delay in the DRG implementation, adding that the initiative remained on track to be introduced in phases by the end of this year, starting with the "Rakan KKM" project. "This is not privatisation. It is publicly owned and developed for public benefit, offering optional value-added services within the Health Ministry's hospitals. "We are already seeing proof-of-concept through the Hospital Service Outsourcing Programme (HSOP), which applies bundled payment principles. "For example, waiting times for arteriovenous (AV) fistula creation for haemodialysis patients have been reduced by over 75 per cent," he added. Turnaround times for Magnetic Resonance Imaging and Angiography (MRI/MRA) services have also improved by more than 20 per cent, Dzulkefly said, saying these value-based models demonstrated that system efficiency and clinical outcomes could be enhanced. Meanwhile, APHM president Datuk Dr Kuljit Singh highlighted the lack of a national electronic health record system, which he said was a critical gap in the DRG implementation process. "The absence of such a system makes DRG implementation more complex," he said. Nevertheless, he expressed appreciation for the ministry's commitment to collaboration and its data-driven, evidence-based approach to the DRG rollout.
