Rising healthcare costs have always been a concern, but now private hospitals in Malaysia are facing an unexpected challenge—insurers demanding bigger discounts on medical bills.
While hospitals say they’ve always offered fair discounts, they warn that meeting these new demands could put patient care at risk.
Private hospitals in M’sia may be dropped by insurance panels
For many Malaysians, having private hospital coverage through insurance provides peace of mind.
It ensures access to quality healthcare without the stress of upfront payments. However, this arrangement is now under threat.
The Association of Private Hospitals Malaysia (APHM) revealed that several hospitals might soon be removed from insurance panels because they can’t meet what it calls “exorbitant” discount requests from insurers.
The struggle to maintain quality care
While private hospitals do offer discounts to insurers, APHM warns that extreme cuts could affect the level of care that patients receive, reported FMT.
The association stressed that its hospitals reinvest their profits into new equipment and facilities to improve treatment options, making medical procedures less invasive and improving survival rates.
“As private hospitals, our main goal is to give patients the best care possible,” APHM said in a statement.
“We work hard to avoid treatment delays and provide top-notch medical technology and expertise at a global standard.”
However, APHM president Dr. Kuljit Singh pointed out that insurers have been asking for much bigger discounts in the past year—more than ever before.
“We always try our best to help insurance companies,” he said.
“But at the end of the day, the patient comes first. We can’t cut costs so much that it puts people’s safety at risk.”
What happens if hospitals are delisted?
If these hospitals are removed from insurance panels, patients will still be able to receive treatment, but with a major drawback—they’ll have to pay the full bill upfront and file claims for reimbursement later.
This means that delisted hospitals will no longer receive guarantee letters from insurers, which could put additional financial pressure on patients, especially those requiring expensive or long-term treatments.
Currently in discussions with MOH
Recognising the challenges faced by both hospitals and insurers, APHM is currently in discussions with the Health Ministry (MOH), Bank Negara Malaysia (BNM), and the Public Accounts Committee (PAC) to address medical inflation and find a sustainable solution.
These talks could play a crucial role in determining the future of private healthcare accessibility in Malaysia.
For now, the question remains—how can hospitals continue to provide top-tier care without compromising financial stability, and how will insurers respond?
