Value-based healthcare
Medical advances: Dzulkefly (third from right) attending the APHM International Healthcare Conference and Exhibition at the Kuala Lumpur Convention Centre. — YAP CHEE HONG/The Star
KUALA LUMPUR: The introduction of basic medical and health insurance/takaful (MHIT) products will mark the first step in the implementation of the diagnosis-related group (DRG) payment model, says Health Minister Datuk Seri Dr Dzulkefly Ahmad.
He said MHIT products would steer private healthcare towards a value-based healthcare model with fairer rules for those with pre-existing conditions.
'Introducing DRGs to pay for healthcare services in phases, beginning with this base MHIT product, will be a key driver for value-based healthcare.
'DRGs incentivise efficiency and we expect this will drive innovations in ambulatory and day case surgery, and expand the use of health technologies, which will demonstrate strong cost effectiveness in improving health outcomes while reducing costs,' said Dzulkefly.
He added that the Health Ministry is working with the Finance Ministry, Bank Negara and the Employees Provident Fund (EPF) to transform private health insurance and takafuls by developing a base MHIT product.
Speaking during the launch of the Association of Private Hospitals Malaysia's (APHM) International Healthcare Conference and Exhibition 2025, he said the Health Ministry has made healthcare financing reform and digitalisation of healthcare services its priority.
'We are also exploring a more diversified health financing ecosystem that combines tax-based allocations, social contributions, employer-based schemes and targeted subsidies, all under a progressive and equitable framework,' he added.
Speaking to reporters after the launch, Dzulkefly said the Health Ministry is hoping to introduce the DRG payment model by the end of the year.
He said the proposed DRG scheme can start with a simple mechanism in its initial stage.
'Start simple first and after the momentum is developed, go for a complex one,' he added.
He also said that Malaysia, especially the APHM and Finance Ministry, have experience in implementing the DRG model.
DRG is a payment system that involves paying an amount predetermined by the DRG, instead of paying for each service received.
Other countries that have implemented this system include Sweden, Canada and Australia.
Dzulkefly was responding to news reports claiming that the government's plans to introduce the DRG system at private hospitals are being put on hold.
Commenting on a separate issue, he said the review of consultation fees for private general practitioners (GPs) has been raised to an executive task force chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Dzulkefly said that after a meeting between the Health Ministry and the National Action Council on Cost of Living (Naccol), it was decided that this issue should be raised to the task force led by Ahmad Zahid. Dzulkefly added that there are no deadlines for finalising the review of consultation fees for private GPs.
'No, but we will tackle this issue at the soonest time possible.
'The Deputy Prime Minister, who chairs the executive task force, will look into the final touches of this,' said Dr Dzulkefly.
On May 3, he had said the review of consultation fees for private GPs would be finalised within a month.
Yesterday, the Medical Practitioners Coalition Association of Malaysia (MPCAM) had proposed raising private GP fees to a minimum of RM50 and a maximum of RM80.
MPCAM had said GP consultation fees have stagnated between RM10 and RM35 for more than three decades since 1992.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
18 hours ago
- Free Malaysia Today
Ispire Malaysia says Johor plant operating above board
Health minister Dzulkefly Ahmad had said that the Cabinet would decide on the fate of Ispire Malaysia Sdn Bhd's operations in Senai, Johor. (LinkedIn pic) PETALING JAYA : Ispire Malaysia Sdn Bhd today affirmed that its plant in Senai, Johor, which manufactures electronic cigarette devices, is fully compliant with local laws and regulations. In a statement, the firm said it operates under stringent procedures to ensure that all manufacturing activities at its Johor facility are exclusively for export purposes. 'To date, Ispire Malaysia exclusively manufactures semi-finished hardware products destined solely for export. 'These products do not contain any nicotine or cannabis – liquid or gel – and thus are not subject to the health ministry's regulations under the Control of Smoking Products for Public Health Act 2024,' it said. It added that the products manufactured in its Johor facility are not marketed, sold, or distributed within Malaysia and not accessible to local consumers. All finished products are exported to regulated international markets such as the US and UK where they are approved for sale by local regulators, the company said. The firm also said that references cited in recent reports were largely drawn from Ispire's official US website and pertained to its business-to-business sales operations in jurisdictions where cannabis and related products are legal. 'These statements do not accurately reflect the operations of Ispire Malaysia, which strictly adheres to all Malaysian laws and regulatory requirements/frameworks,' it said. Health think tank CodeBlue previously reported that Ispire produces nicotine and cannabis-related vaping products, and that its devices are used by clients to fill cartridges with cannabis oils in global markets. The report cited an investor presentation in Las Vegas in April, published on YouTube on May 6, which stated that Ispire produces 'mainly cannabis-related products' in its Malaysian manufacturing facility, which has up to seven production lines. In a statement last week, the health ministry confirmed that the government had issued Ispire an interim nicotine manufacturing licence to produce e-cigarettes with nicotine in its plant in Johor, together with local council approval. However, CodeBlue noted that the ministry's June 2 statement did not mention the plant's production of cannabis vaporisers, which reportedly began in February 2024. Ispire Malaysia today said that any production of nicotine-based products, if initiated, would be strictly for export and subject to formal approval by all relevant government agencies at both federal and state levels. Yesterday, health minister Dzulkefly Ahmad said that the Cabinet would decide on the fate of Ispire's operations in Malaysia.
The Star
19 hours ago
- The Star
Value-based healthcare
Medical advances: Dzulkefly (third from right) attending the APHM International Healthcare Conference and Exhibition at the Kuala Lumpur Convention Centre. — YAP CHEE HONG/The Star KUALA LUMPUR: The introduction of basic medical and health insurance/takaful (MHIT) products will mark the first step in the implementation of the diagnosis-related group (DRG) payment model, says Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said MHIT products would steer private healthcare towards a value-based healthcare model with fairer rules for those with pre-existing conditions. 'Introducing DRGs to pay for healthcare services in phases, beginning with this base MHIT product, will be a key driver for value-based healthcare. 'DRGs incentivise efficiency and we expect this will drive innovations in ambulatory and day case surgery, and expand the use of health technologies, which will demonstrate strong cost effectiveness in improving health outcomes while reducing costs,' said Dzulkefly. He added that the Health Ministry is working with the Finance Ministry, Bank Negara and the Employees Provident Fund (EPF) to transform private health insurance and takafuls by developing a base MHIT product. Speaking during the launch of the Association of Private Hospitals Malaysia's (APHM) International Healthcare Conference and Exhibition 2025, he said the Health Ministry has made healthcare financing reform and digitalisation of healthcare services its priority. 'We are also exploring a more diversified health financing ecosystem that combines tax-based allocations, social contributions, employer-based schemes and targeted subsidies, all under a progressive and equitable framework,' he added. Speaking to reporters after the launch, Dzulkefly said the Health Ministry is hoping to introduce the DRG payment model by the end of the year. He said the proposed DRG scheme can start with a simple mechanism in its initial stage. 'Start simple first and after the momentum is developed, go for a complex one,' he added. He also said that Malaysia, especially the APHM and Finance Ministry, have experience in implementing the DRG model. DRG is a payment system that involves paying an amount predetermined by the DRG, instead of paying for each service received. Other countries that have implemented this system include Sweden, Canada and Australia. Dzulkefly was responding to news reports claiming that the government's plans to introduce the DRG system at private hospitals are being put on hold. Commenting on a separate issue, he said the review of consultation fees for private general practitioners (GPs) has been raised to an executive task force chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Dzulkefly said that after a meeting between the Health Ministry and the National Action Council on Cost of Living (Naccol), it was decided that this issue should be raised to the task force led by Ahmad Zahid. Dzulkefly added that there are no deadlines for finalising the review of consultation fees for private GPs. 'No, but we will tackle this issue at the soonest time possible. 'The Deputy Prime Minister, who chairs the executive task force, will look into the final touches of this,' said Dr Dzulkefly. On May 3, he had said the review of consultation fees for private GPs would be finalised within a month. Yesterday, the Medical Practitioners Coalition Association of Malaysia (MPCAM) had proposed raising private GP fees to a minimum of RM50 and a maximum of RM80. MPCAM had said GP consultation fees have stagnated between RM10 and RM35 for more than three decades since 1992.
The Star
19 hours ago
- The Star
Long, winding road towards DRG payment model rollout
KUALA LUMPUR: A proper rollout of the diagnosis-related group (DRG) payment model could take more than six months, given the complexities in data gathering and analysis, said Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh. He said that for any DRG or any DRG-type mechanism to work, accurate clinical data and a national electronic health record system are needed. Presently, this foundational data is not yet available, which presents significant challenges for timely and effective DRG implementation, he added. '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,' said Dr Kuljit. He also said the APHM is heartened to hear Health Minister Datuk Seri Dr Dzulkefly Ahmad's announcement at the APHM International Healthcare Conference and Exhibition 2025 that a basic medical and health insurance/takaful (MHIT) product will be introduced later this year, while the DRG will be rolled out in phases. To support this national initiative, Dr Kuljit said APHM member hospitals have offered to share relevant clinical data required for the set-up of a DRG system with the Health Ministry and the Finance Ministry. 'APHM strongly advocates that adequate time and resources be allocated to ensure that the DRG initiative is thoroughly conceptualised, piloted and implemented to ultimately deliver sustainable improvements for all Malaysians,' added Dr Kuljit. Earlier, Dzulkefly said introducing DRGs to pay for healthcare services, in phases, beginning with MHIT products, will be a key driver for value-based healthcare.
