[UPDATED] Bangi private hospital must prioritise patient transfers amid RM8.3mil asset seizure

New Straits Times

12-07-2025

KUALA LUMPUR: The Health Ministry has no jurisdiction to bail out a private hospital in Bangi that is facing an asset seizure following a court judgment in a medical negligence case involving an RM8.32 million payout.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said the ministry's immediate concern is the welfare of patients.
"The hospital must begin transferring all patients, together with their medical records, to other suitable healthcare facilities within the 14-day period provided under the enforcement process.
"This may include other private hospitals with existing arrangements, or to government hospitals where necessary. What matters most is that patient care is not disrupted," Dr Dzulkefly said after the Gotong Royong Mega Fight Against Aedes 1.0 at PPR Seri Kota, Bandar Tun Razak, conducted in conjunction with the ASEAN Dengue Day 2025 here today.
The seizure stems from a civil suit filed by the family of a premature baby girl, who was born at 26 weeks gestation on Feb 26, 2003. The child was later diagnosed with spastic quadriplegic cerebral palsy.
In its ruling on Sept 10, 2020, the High Court found the hospital liable for negligent obstetric care and awarded the family RM8.12 million in damages.
The Court of Appeal, in a decision on Feb 4, 2022, upheld the ruling against the hospital, but allowed the appeal of two doctors named in the suit.
The award was subsequently reduced to RM6.03 million.
The hospital later appealed to the Federal Court, which dismissed the case on Feb 24, 2023.
As of May this year, the hospital had failed to make full payment, with interest bringing the total amount owed to RM8.32 million.
A writ of seizure and sale was issued by the Kuala Lumpur High Court on May 26 after the hospital failed to comply with the judgment.
Dr Dzulkefly said while the enforcement was not carried out by the Health Ministry, the incident serves as a serious reminder to private healthcare providers governed under the Private Healthcare Facilities and Services Act 1998 (Act 586).
"Let me be clear, this enforcement action was a result of a civil suit and court process. It did not involve the ministry.
"That said, I want to remind all private hospitals that compliance with Act 586 is mandatory."
He added that the ministry would not intervene in matters of corporate liability or insolvency.
Dr Dzulkefly added that while the Act does not provide compensation mechanisms for patients or employees in the event of insolvency, healthcare providers are expected to take all reasonable steps to protect the wellbeing of patients.
He also said hospitals were expected to have professional liability insurance in place.
"We assume such coverage exists, but it can be verified. Every facility must be accountable, and every practitioner must have indemnity."