APHM factbook spotlights private hospitals’ contribution to healthcare amid inflation

The Association of Private Hospitals of Malaysia (APHM) recently launched the 2024 Factbook with the theme of ‘Evolving Landscape of the Private Healthcare System in Malaysia: Contributions, Challenges, and Recommendations.’ The inaugural factbook documents detailed insights into the contributions of private hospitals to nationwide healthcare as well as the concerns faced by private hospitals and viable solutions for future progress.

Notably, private hospitals contribute significantly to the country’s economy with a direct impact of RM6 billion to the gross domestic product (GDP) in 2023, employing about 45,000 people. Indirectly, they collaborate with pharmaceutical, medical devices and diagnostics, healthcare tourism, and insurance sectors. Innovative healthcare interventions such as robotic surgery and personalized treatments, add an estimated RM11 billion equivalent GDP due to early access, partial productivity gain, and shorter hospital stay.

Public-private partnerships build public health equity via initiatives such as clinical trials participation, technology adoption in hospital operations, and health screening programs. The sector also engages in corporate social responsibility (CSR) activities including scholarships for healthcare professionals and medical equipment donations. Cost-containment measures have mitigated healthcare cost inflation, keeping patient cost increases to 4 percent compound annual growth rate (CAGR) from 2020 to 2023, compared to a projected 12 percent CAGR without these measures. Overall, APHM believes in addressing challenges and fostering strategic partnerships to allow for the overall healthcare ecosystem to deliver true value-based healthcare for the patients’ benefit.

“Many harbour the misconception that private hospitals are driven solely by profit. Such narratives detract from the significant contribution we make toward patient care and national health. In reality, our industry is strictly regulated to ensure safety and quality. Price transparency stands as a cornerstone in our practices, challenging the impression of profiteering,” said APHM’s president Datuk Dr Kuljit Singh at the factbook launch.

Health Minister Datuk Seri Dr Dzulkefly Ahmad officiated the launch. He said: “The challenge has been in controlling medical inflation, which for now hovers around 12.5 percent putting Malaysia’s inflation relatively high compared to recent years. Even though there are some measures of control in terms of doctors’ fees, it is alarming to note that hospital fees have increased very significantly. The impact on the rakyat is high so there must be further discussion to ensure prices of medical services in private healthcare can be more reasonable and mitigated.”

Nevertheless, Dzulkefly acknowledged in the foreword of the factbook that the private healthcare sector has an important role in complementing public hospitals especially in urban settings, in addition to its significant contribution to Malaysia’s GDP. “This timely publication serves as a comprehensive repository of information, underscoring the pivotal role of the private healthcare sector, particularly private hospitals, in our nation’s healthcare landscape,” he added.