Materia Medica Malaysiana

Private wing fees would be lower

Source: New Straits Times Wednesday, July 21, 2004

Kuala Lumpur, Tues. -
Malaysians are assured that treatment at the proposed private wings of public hospitals will be cheaper than at private hospitals.

Health Minister Datuk Dr. Chua Soi Lek assured Malaysians today that the new fee schedule for private wings would ensure this.

"We will examine fees charged by the private sector. We cannot charge the same fees as the private sector. Government service must always have an element of subsidy," he said in an interview.

He cited the example of Magnetic Resonance Imaging (MRI) which costs an average of RM1,200 in private hospitals but only RM150 at government hospitals.

He said the ministry wanted to introduce a more equitable rate for such specialised procedures.

"We have not worked out the details of the new rates yet. There is a lot of red tape to look into," he said.

He said a team headed by ministry secretary-general Datuk Ismail Adam and Deputy Health Minister Datuk Dr Abdul Latiff Ahmad has been appointed to look into the matter.

Dr. Chua, who acknowledged that private hospitals were not happy with the decision to set up private wings in public hospitals, said they should not worry about the financial bottomline.

"Market forces will determine, especially in a service industry like health, where people will go. Health is a very personal and important matter and will affect every family."

He said there should be sufficient business for both public and private hospitals as the economy expanded and the public became more affluent.

He said the new schedule would not have to go through Parliament as it was not an amendment to the existing fee structure under the Fee Act (medical) 1994.

On the variables in determining the new fee structure, he said payments to doctors and nurses would top the list.

"We have to look at how much to pay doctors and nurses. We also have to look at the insurance aspect and who should pay for it.

"We also have to look at how many hours doctors and nurses are allowed to work," he said.

Dr. Chua said there was also the issue of where private wings should be located.

"This is a huge issue to be tackled. There are many variables involved and I need a few months to put everything in place."

Dr. Chua yesterday announced that private wings would be set up at public hospitals next year, adding that a pilot project would begin once administrative matters are settled.

Under the Act, government hospitals can charge maximum surgical fees of RM200 for third class, RM1,200 for second class, and RM3,000 for first class patients. This does not include ward, food, medicine and other charges.

Meanwhile, the Association of Private Hospitals of Malaysia (APHM), which is against the move, said the private wings would create a "two-tier" system, where patients' access to treatment would depend on their ability to pay.