Think tank: Consultation fee cap, medicine pricing rule threaten private clinics' survival
Galen Centre chief executive Azrul Mohd Khalib said general practitioners had only two income streams — consultation fees, which are capped, and the sale of medicines.
"The price for consultations has been capped at RM35 for 33 years, so naturally, clinics have looked to the sale of medicines to make up for rising costs and inflation over those three decades," Azrul told the New Straits Times.
He said with clinics now having to display their medicine prices, consumers would more likely ask for a prescription and purchase medicines at lower prices from pharmacies.
Azrul said a patient had the right to ask for a prescription to buy medicines elsewhere.
"The pharmacy chains can offer lower prices because they purchase in bulk, which clinics cannot do."
He said that while clinics would have to comply with the price display rules, the net result was that people would be more likely to buy their medicines from pharmacies.
"This would disincentivise clinics from also serving as dispensaries and focus purely on consultations, which will not be sustainable given the RM35 rate.
Azrul said there would be clinics that decided to close shop or reduce operating hours to slash overhead costs.
"There would be little incentive for clinics to open in areas with low population densities or operate 24 hours, because the profit margins would be very low.
"Ultimately, this can affect primary healthcare, as it would see people going to government clinics or hospitals if no private clinics near their homes are open."
He added that the situation may not be ideal for patients who want the convenience of getting their medicines from clinics, especially in more suburban or rural areas.
"You could have a scenario where patients who go to a clinic late at night and are willing to buy medicines at the clinic but can't, because they have not been stocked, and the pharmacy only opens the following day."
The best way forward, Azrul said, would be to deregulate consultation fees.
He said the government could set a floor price and leave the rest to market forces.
"This is the least antagonistic path. Clinics can reduce their overheads in terms of stocking medicines, charge more realistic consultation prices, and compete based on service.
"At the same time, the transparency of medicine prices can still be retained while clinics remain sustainable, ensuring the continuity of primary healthcare."
There are an estimated 12,000 private clinics nationwide.
On Saturday, Health Minister Datuk Seri Dr DzulkeflyAhmad gave an assurance that revised rules on medical consultation fees would be finalised within a month.
He said a cabinet memorandum and supporting circular had been prepared, and would be tabled soon.
"I am aiming to resolve this matter within a month at the latest," he added.
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