The HEALTH | November-December . 2024

Understanding the multifaceted impact of private hospitals in Malaysia

BY KHIRTINI K KUMARAN

The recently-released Association of Private Hospitals of Malaysia ( APHM ) Factbook 2024 , ‘ Evolving Landscape of the Private Healthcare System in Malaysia : Contributions , Challenges , and Recommendations ’, shed light on the significant role these institutions play , detailing both their contributions and the challenges they face .

APHM President Datuk Dr Kuljit Singh expressed the significance of the newly-released factbook : “ I am delighted to present the inaugural factbook of the APHM . This comprehensive publication provides detailed insights into the contributions made by the Private Hospital Sector to the nation , the issues it encounters , and recommendations for future progress .”

As the healthcare system evolves , private hospitals must deal with financial , regulatory , and market challenges to keep operating and improve patient care . Understanding these insights is crucial for guiding future healthcare initiatives in Malaysia .

VITAL CONTRIBUTIONS

Minister of Health Malaysia Datuk Seri Dr Dzulkefly Ahmad highlighted the importance of the private healthcare sector in complementing public services .

“ The private hospital sector significantly contributes to Malaysia ’ s GDP . This sector plays a crucial role in complementing public hospitals , especially in urban settings .”

This partnership is vital in fostering a cohesive healthcare ecosystem that prioritises patient welfare .

According to the Factbook , private hospitals not only bolster the nation ’ s Gross Domestic Product ( GDP ) but also enhance healthcare delivery , innovation , and community well-being .

• Economic Impact In 2023 , private hospitals contributed around RM6 billion to Malaysia ’ s GDP . Although this is less than one per cent

Datuk Dr Kuljit Singh

“ The private hospital sector significantly contributes to Malaysia ’ s GDP . This sector plays a crucial role in complementing public hospitals , especially in urban settings .”

– Datuk Seri Dr Dzulkefly

Ahmad of the national GDP , it is essential when considering the sector ’ s broader economic influence . The private hospital industry employs about 45,000 people , making it one of the most productive sectors in the country . Additionally , the indirect economic impact of private hospitals is estimated at RM12 billion , generated through connections with various industries like pharmaceuticals , medical devices , diagnostics , tourism , and insurance .

This interconnectedness highlights that private hospitals are not just healthcare providers but also economic drivers that create jobs and support related industries . Their operations strengthen the overall economy , making them essential to Malaysia ’ s financial landscape .

• Quality Healthcare Private hospitals are valued for their ability to provide high-quality care and prompt medical services . The sector has made significant advances by investing in modern technologies , such as robotic surgery and personalised treatments . These innovations have improved patient outcomes and contributed around RM11 billion to GDP by reducing the burden of disease and enhancing quality of life .

The adoption of modern medical technologies has been a game changer , particularly in reducing the duration of inpatient stays and accelerating access to healthcare services . Collaborations with public healthcare channels further optimise resource allocation , ensuring that patients receive comprehensive care in a streamlined healthcare environment .

• Public Health Equity Private hospitals are at the forefront of promoting public health equity through various initiatives . Their involvement in clinical trials , health screening programmes , and public-private partnerships shows their commitment to enhancing access to healthcare . The Covid-19 pandemic highlighted the critical need for such collaborations , demonstrating how private entities can effectively support national health initiatives .

As Malaysia seeks to improve health outcomes across its population , the opportunities for scaling these partnerships are vast . By leveraging digital integration , private hospitals can extend their services , making healthcare more accessible and equitable for all Malaysians .

• CSR and ESG Initiatives The commitment of private hospitals to environmental , social , and governance ( ESG ) principles is evident in their corporate social responsibility ( CSR ) efforts . These initiatives include scholarships and educational funds aimed at addressing the talent shortage in healthcare , as well as philanthropic contributions of medical equipment to public hospitals .

Such actions demonstrate that private hospitals are not merely profitdriven entities ; they are also dedicated to enhancing community well-being . By prioritising ethical practices and sustainability , these institutions contribute to a healthier society and foster a sense of responsibility within the healthcare sector .

• Mitigating Medical Inflation Amidst global economic challenges , private hospitals have implemented effective cost-containment measures to mitigate medical inflation . These initiatives , ranging from procurement excellence and prudent medical practices to leveraging technology for operational efficiencies , have been instrumental in limiting the