Subra: Bundling concept can lower private hospital prices

Subra: Bundling concept can lower private hospital prices

Health Minister Dr S Subramaniam says government aware of high medical charges charged by private hospitals, and are in discussions to find a solution.

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KUALA LUMPUR:
The health ministry is in discussions with private hospitals to introduce the concept of bundling, in a bid to reduce the cost of private healthcare, the Dewan Rakyat was told today.

Health Minister Dr S Subramaniam said the bundling method has been carried out in other countries, and the ministry was currently looking into the experiences of these countries.

Under the bundling model, healthcare providers and facilities are paid a single payment, for all the services performed to treat a patient undergoing a specific episode of care.

“If negotiations between the ministry and private hospitals are successful, we may be able to expand the regulation, which is now limited to consultation fees to professionals, to cover treatment entities, in order to make it more holistic and controlled,” he said in response to a supplementary question by Wong Chen (PKR-Kelana Jaya).

Subramaniam (BN-Segamat) added that the government was aware of the high medical treatment fees charged by private hospitals, and that the ministry has started a study to compile information on the costs of healthcare at private hospitals.

Wong had also asked if the health ministry would be able to provide an undertaking to complete the study within six months, and after that begin negotiations with private hospitals for them to charge reasonable fees.

Under the 13th Schedule of the Private Healthcare Facilities and Services (Private Hospitals and Other Private Healthcare Facilities) Regulations 2006, the ministry can place a ceiling on consultation fees, as a protection for patients against extremely high professional charges.

Subramaniam said prior to 2006, there was no control on treatment costs at private hospitals, including consultation fees.

Since 2006, the government had through the 13th Schedule, started regulating professional fees.

However, according to Subramaniam, other matters, such as hospital accommodation and miscellaneous items could still vary in price and was left to the discretion of the patients.

“The ministry has from time to time fine tuned costs for consultation but gave freedom to private hospitals on other charges such as lodging, food and medicine.

“When a patient is admitted to the hospital, it is not known how long they will be in hospital. And there are cases where the illness deteriorates to the point they have to be admitted to the intensive care unit (ICU).

“When one is admitted to the ICU, of course the cost increases. Many patients, in making financial plans, do not look into whether they are able to pay those extra costs,” Subramaniam said.

Earlier, Wong had asked for measures that will be taken to resolve the high cost of medical treatment in private hospitals, which may lead to patients having to transfer to government hospitals after a few days of treatment at a private hospital.

Wong said that his question on the high cost of intensive care in a private hospital was based on a real life experience of a Subang Jaya family.

He said that a patient had been in intensive care for two-and-a-half months, with the bill coming up to a staggering RM450,000.

Unfortunately, Wong said, the victim died despite the family spending so much money for the treatment.

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