“We want to see a cheaper cost for our patients, maybe even a two-tier pricing system for private hospitals,” Finance Minister Lim Guan Eng told Bernama.

“This is something we need to have further engagement on with the private healthcare industry.”

He added that private hospitals should consider measures to reduce costs and pass on the savings to help patients who cannot afford treatment.

He said the government would continue to support the industry through tax incentives, adding that just last year it had exempted patients seeking treatment at private hospitals from the service tax.

Lim added that discussions are ongoing with stakeholders, including the health ministry, on the pooled procurement of drugs in bulk which can be purchased at lower prices.

“Currently, the sourcing of drugs is done separately. It is all a question of scale. When you buy in bulk, you can get cheaper rates,” he added.

The nationwide procurement of medicines via pool-based procurement is being implemented on a pioneer basis for 85 drug items. A report on cost savings will be submitted to the ministry every six months after the contract is finalised.