Govt fine-tuning legal framework to curb rising private healthcare costs
Finance Minister Datuk Seri Anwar Ibrahim said the Ministry of Health (MOH) is refining the legal framework to enable initiatives under Reset, including the introduction of the Diagnosis-Related Group (DRG) payment system.
"The MOH is currently reviewing relevant acts to align efforts to address medical inflation. Amendments to the Private Healthcare Facilities and Services Act 1998 are being studied and refined to allow for the implementation of the DRG payment system, which will require the sharing of minimum clinical and financial data, as well as other related initiatives under the Reset strategic framework.
"The government will continue to consider amendments to other acts under the ministry's jurisdiction, if necessary, to empower the overall Reset strategy," he said in a written parliamentary reply.
Anwar, who is also prime minister, said the Reset strategy comprises five strategic pillars and 11 key initiatives.
The first pillar is the improvement of Medical and Health Insurance and Takaful (MHIT) through the development of a basic MHIT product that will modify MHIT product features and enable the setting of more sustainable and stable premium rates in the long term.
He said the second pillar is increasing price transparency through the display of medicine prices and the publication of price ranges for common healthcare services to enable consumers to make informed decisions.
"Third, strengthening the digital health ecosystem through electronic medical records to improve quality of care and reduce the need for repeated diagnostic tests.
"Additionally, expanding cost-effective options through Rakan KKM and the provision of more affordable hospitals, including encouraging the expansion of non-profit hospitals.
"Lastly, transforming the provider payment mechanism to a DRG system to ensure value-based healthcare payments that align with the interests of patients, healthcare providers, and payers," he said.
He added that the implementation of Reset initiatives is monitored by the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad.
He was responding to Sim Tze Tzin (PH-Bayan Baru) on the Reset strategy to address medical inflation.
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