Up to 70 per cent private hospital bills unregulated 

PRIVATE hospital bills in Malaysia are largely unregulated, with up to 70 per cent of charges falling outside government oversight, said the Galen Centre for Health and Social Policy CEO, Azrul Mohd Khalib.

According to reports in Code Blue, he said these unregulated charges often include fees for basic items and services like wheelchairs, heart monitors, and even the use of stainless steel kidney dishes.

“Private hospitals are charging for things that don’t necessarily need to be charged,” Azrul said at a recent forum in Kuala Lumpur.

Azrul said that, based on industry research, 30 per cent are specialist and drug charges, while 70 per cent of the hospital bill – which is sometimes 16, 17, 18, or 20 pages long – are unregulated.

“They can charge what they want, as much as they want, even for the use of kidney dishes – the stainless steel trays that you put instruments in and so forth. Hospitals can charge for the usage of that kidney dish as well.

“It’s unregulated. That 70 per cent of the hospital bill today is unregulated, which is why we are having these conversations today about what is a reasonable and rational charge in a hospital,” he said.

In the same report by Code Blue, Bayan Baru MP Sim Tze Tzin described private health care as the “Wild West”, claiming the sector operates without sufficient regulation and is excessively profiteering.

“There is no regulation of private hospitals. Yes, it’s true,” Sim said. “I spoke to Dr Dzulkefly Ahmad, the health minister, and he said his hands are tied, he has no punca kuasa. That’s why there’s no regulation for hospital services or protection for consumers. They can charge whatever they want.

“For example, a pair of gloves. Some people complained to me about being charged RM20 for a single pair of gloves in their medical bill. One box of gloves costs around RM50, but you charge a pair for RM20. Diapers – you can buy an eight-pack at Tesco or wherever for around RM50, but you charge one diaper for RM50. That’s too much.”

Sim stressed that while private hospitals are profit-driven, there is a line between profitability and excessive profiteering.

Azrul called for the setting up of a new regulatory body to specifically address the issue of healthcare inflation in Malaysia. He suggested that health insurance, currently regulated by Bank Negara Malaysia (BNM), should be placed under this new body, which would act in the interests of consumers rather than the industry.

He also highlighted the need for the regulatory body to address the unregulated portion of hospital bills, which make up 70 per cent of private hospital bills. - January 9, 2025