DRG payment plan to cover both public, private healthcare providers, Health Minister clarifies
KUALA LUMPUR: The government's plan to implement the diagnosis-related group (DRG) payment model will include both public and private healthcare providers, with particular focus on the private sector, said Health Minister Datuk Seri Dr Dzulkefly Ahmad.
The health minister dismissed a report last month which claimed that private healthcare providers would be left out of the DRG framework.
"Completely wrong. The DRG payment system is intended for both public and private healthcare providers, especially the private sector.
"While we do want the public system to adopt it as well, the main focus is on the private sector," he told reporters after a panel discussion at Bank Negara Malaysia's Sasana Symposium 2025.
The panel discussion on "Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation" featured Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour, Finance Ministry secretary general of treasury Datuk Johan Mahmood Merican, and World Bank senior economist Aakash Mohpal.
Dzulkefly said the DRG is designed to provide a standardised, fair and equitable framework for healthcare remuneration.
"It ensures there is no overcharging by basing payments on clearly defined groupings, such as diagnosis, procedures and complications," he said.
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