Latest news with #MHIT
Daily Express
10 hours ago
- Health
- Daily Express
Medical insurance first product under diagnosis pricing system, says Dzulkefly
Published on: Monday, June 09, 2025 Published on: Mon, Jun 09, 2025 By: Tan Chin Tung, FMT Text Size: Health minister Dzulkefly Ahmad said 78 health clinics have adopted the cloud-based clinic management system, with another 90 set to come on board later this year. (Bernama pic) Kuala Lumpur: Health minister Dzulkefly Ahmad says the government's introduction of a basic medical and health insurance and takaful (MHIT) product marks the first step in the phased implementation of a diagnosis-related group (DRG) pricing system. Speaking at the launch of the APHM International Healthcare Conference & Exhibition 2025 here today, he said the product would broaden private sector financing options and steer private healthcare towards a value-based healthcare model. Advertisement 'We are also exploring a more diversified health financing ecosystem that will combine tax-based allocations, social contributions, employer-based schemes, and targeted subsidies under a progressive and equitable framework,' he said. In March, deputy prime minister Ahmad Zahid Hamidi said the finance ministry, Bank Negara Malaysia, and the EPF would develop MHIT products in view of the rising medical costs. He said the initiative was part of the national health sector reform effort to ensure access to more sustainable medical treatment. Dzulkefly said the DRG pricing system – which standardises 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, with fairer rules for those with pre-existing conditions in the context of an ageing nation where the prevalence of non-communicable diseases is high. Advertisement 'Diagnosis-related groups incentivise efficiency. 'We expect this to drive innovation in ambulatory and day-case surgery, and expand the use of health technologies that demonstrate strong cost-effectiveness in improving health outcomes and reducing total costs,' he said. Dzulkefly said the system is expected to be rolled out before the end of 2025. 'We will start with simpler groups under DRG that are easier to manage. From there, we will build momentum and move on to more complex groups. 'With the cooperation of APHM, the finance ministry and other stakeholders, I am confident we can implement the initial phase by the end of this year and continue building from there,' he told reporters later. Separately, he said a joint ministerial committee would coordinate health-focused initiatives under GEAR-uP, which will see six GLICs invest RM120 billion in 'high growth, high value' industries over five years to stimulate domestic economic growth. 'This is expected to drive further investments into the health sector, particularly in the spectrum of healthcare providers, not limited to large multi-speciality tertiary hospitals,' he said. Dzulkefly also said that 78 health clinics had adopted the cloud-based clinic management system, with another 90 set to come on board later this year. He said the clinics saw more than 70% of patients receiving treatment in under 30 minutes, 20% attended to within 30 to 60 minutes, and 10% attended to within 90 minutes. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malaysian Reserve
11 hours ago
- Health
- Malaysian Reserve
Govt rolls out MHIT to boost health financing options
by AKMAR ANNUAR MALAYSIA'S move toward a diagnosis-related group (DRG) pricing model in private healthcare has begun with the rollout of a new Medical and Health Insurance and Takaful (MHIT) product, said Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said the initiative, developed in collaboration with the Ministry of Finance, Bank Negara Malaysia and the Employees Provident Fund (EPF), aims to widen private sector financing avenues and strengthen the foundation for value-based healthcare in the country. 'This marks a crucial step in establishing fairer rules for individuals with pre-existing conditions,' he said at the opening of the APHM International Healthcare Conference & Exhibition 2025 in Kuala Lumpur recently. The MHIT product is part of broader national health reforms addressing long-standing challenges of affordability and sustainability in private healthcare, particularly against the backdrop of Malaysia's ageing population and rising burden of non-communicable diseases (NCDs). Dr Dzulkefly explained that the DRG pricing framework—designed to reimburse healthcare providers based on the diagnosis and treatment provided rather than the volume of services—will promote more efficient, cost-effective care delivery. Additionally, he said the diagnosis-related group (DRG) system encourages efficiency by rewarding healthcare providers based on the quality and appropriateness of care rather than the volume of services provided. Plus this approach, he added, is expected to stimulate innovation in outpatient and day-case surgical procedures, while also promoting the adoption of cost-effective medical technologies that can improve patient outcomes and lower overall healthcare expenditure. Beyond insurance reform, the government is also re-evaluating the country's health financing ecosystem to make it more inclusive and resilient. This includes integrating tax-based funding, social health contributions, employer-backed schemes and targeted subsidies into a more progressive structure. In line with this, the government has introduced the Generative Economy Action Roadmap for Upward Progress (GEAR-uP), which brings together six government-linked investment companies (GLICs) to invest RM120 billion in high-growth, high-value sectors over five years. Dr Dzulkefly said a joint ministerial committee will oversee GEAR-uP's health-focused investments, which are expected to stimulate growth beyond traditional tertiary care providers. 'This is expected to drive further investments into the health sector, particularly in the spectrum of healthcare providers, not limited to large multi-specialty tertiary hospitals,' he said. Meanwhile, progress has also been made in digitalising public primary care facilities. To date, 78 health clinics have adopted a cloud-based clinic management system, with an additional 90 set to implement the platform by year-end. The digital shift has already shown measurable impact: Over 70% of patients are now receiving treatment within 30 minutes, while only 10% face wait times of more than 90 minutes. The introduction of MHIT and the gradual shift toward DRG-based pricing underscore the government's intent to reshape Malaysia's healthcare delivery and financing landscape — aiming to make it more equitable, efficient and responsive to emerging health challenges.
