In a statement, APHM said for the DRG or any DRG-type mechanism to work, accurate clinical data and a national electronic health record system was needed.

“As the process of gathering and analysing such data is complex and time-consuming, APHM anticipates that a proper rollout will require considerably more than six months.

“To support this national initiative, APHM member hospitals have offered to share relevant clinical data required for the set up of a DRG system with the ministries,” it said.

The association added that adequate time and resources must be allocated to ensure that the DRG initiative is thoroughly conceptualised, piloted, and implemented, to ultimately deliver sustainable improvements for all Malaysians.

Earlier today, health minister Dzulkefly Ahmad said the DRG pricing system – to standardise the costs for certain groups of patients according to their ailments and encourage cost containment initiatives – would be a key driver for value-based healthcare.

The initiative, targeted to be rolled out by the end of the year, aims to provide fairer pricing for those with pre-existing conditions, especially with Malaysia becoming an ageing nation where the prevalence of non-communicable diseases (NCD) is high.

According to Dzulkefly, the government’s introduction of a basic medical and health insurance and takaful (MHIT) product marks the first step in the phased implementation of the DRG pricing system.

He said the product would broaden private sector financing options and steer private healthcare towards a value-based healthcare model.