KUALA LUMPUR (Feb 19): The Association of Private Hospitals of Malaysia (APHM) has reaffirmed its commitment to working closely with the government to achieve a sustainable long-term solution to medical cost inflation in the country.
The APHM, which represents over 150 private hospitals nationwide, recently held discussions with Public Accounts Committee (PAC) chairperson Datuk Mas Ermieyati Samsudin and committee members in Parliament.
The meeting addressed concerns over the rising cost of medical services and its impact on both patients and healthcare providers.
“In this meeting, the APHM shared ongoing transparent and cooperative efforts of private hospitals to support Malaysia’s healthcare system,” the association said in a statement. “The APHM also expressed that it is broadly aligned to the government’s vision of ensuring quality healthcare access for the country”.
"The APHM welcomes the PAC’s initiative to address the medical cost inflation issue by providing the rakyat a platform to voice their concerns, and by providing stakeholders such as the APHM the opportunity for collaboration," it said.
The association will be attending the proceedings hosted by PAC in the first week of March. Beyond its engagement with the PAC, the APHM also held a closed-door discussion with Bank Negara Malaysia (BNM) on the issue of medical cost inflation.
“Our patients are our foremost priority. At the same time, we do our very best to support the Ministry of Health,” said APHM president Datuk Dr Kuljit Singh.
At a press conference in Parliament last week, Mas Ermieyati highlighted the need for long-term solutions to address public concerns over rising private hospital charges and increasing insurance premiums, despite the interim measures taken by the government and BNM to regulate premium hikes.
She added that the PAC aims to assist the government in drafting private healthcare reforms through an inclusive process that involves all stakeholders, including public input. The first public hearing was held on Feb 14 in Penang, with the next session scheduled for Friday (Feb 21) at the Parliament building.
Last month, BNM announced a series of interim measures to address the burden of rising medical insurance premiums on policyholders. These measures include spreading out premium increases over at least three years, and pausing certain premium adjustments for individuals aged 60 and above.
BNM noted that Malaysia’s medical cost inflation of 15% in 2024 significantly exceeded the global average of 10% and the Asia-Pacific average of 11%. The central bank attributed the sharp rise to advancements in medical technology, and the increasing prevalence of non-communicable diseases, both of which had driven up demand for healthcare services.
Insurers in Malaysia have complained of escalating claims and medical inflation over the years and, in response, are raising their premiums while introducing co-payment options that will result in cost-sharing with policyholders.
Healthcare providers, meanwhile, blamed rising costs. The APHM said in November last year it does not rake in exorbitant profit, claiming that the industry’s profit-after-tax margins of between 9% and 11% are modest compared to other sectors.