Tax perks, better medical tourism on private GPs’ Budget 2022 wish list

KUALA LUMPUR – Healthcare stakeholders are proposing that tax incentives be given to private general practitioners (GPs) and the country’s medical tourism beefed up in Budget 2022.

Malaysian Medical Association (MMA) president Dr Koh Kar Chai said that it is high time the government gave due recognition to primary care providers for their role in managing the pandemic and maintaining the health of Malaysians throughout the period.

“We propose that tax incentives be given to private GPs throughout the pandemic period,” he said in a statement.

“We also look forward to increased public-private collaborations in healthcare. One of the areas the government should look into is the management of non-communicable diseases, which can be outsourced to private GPs.”

He said better outcomes for the sector can be achieved with such collaborations as patients will be seen more regularly by their GP.

“As the country transitions into an endemic phase, private GPs will play an important role in pandemic preparedness,” he said.

“Private GPs have been instrumental in testing the population for the virus at Covid-19 Assessment Centres and in giving vaccinations under the National Immunisation Programme.

“Private GPs will also have a role to play in managing any resurgence in Covid-19 cases during the endemic phase.”

Ahead of the Budget announcement this Friday, Dr Koh said the government needs to spend a minimum of 5% of the country’s gross domestic product (GDP) on healthcare.

This, he said, is an amount that is among several criteria to achieve universal health coverage by the year 2030.

However, he said the country’s healthcare budget has been below 4% of GDP since 2016.

Currently, the healthcare budget is between 3.9% to 4.1% of GDP, and close to 50% of that comes from the private sector.

“The government only spends approximately 2.2% of GDP, therefore we are way below the healthcare budget recommended for a robust healthcare system,” he said.

“Following advances in medical technology, an aging population, disease burden, and increasing healthcare demand, healthcare costs in Malaysia are likely to outpace the national inflation rate.”

He said MMA hopes that the 2022 healthcare budget will reflect the Health Ministry’s commitment towards the implementation of reforms urgently needed in the country’s healthcare system. 

“The pandemic has exposed many gaps in our healthcare system which will need to be addressed with both short term and long-term investment in healthcare human resources and infrastructure,” he said.

MMA also proposed the consultation fee for visits to public healthcare facilities to be increased from RM1 to at least RM5, but those in the B40 group can have the increased fees subsidised or waived if they find it a burden.

“An increase in the consultation fee at public healthcare facilities has been long overdue but there has not been any political will in the past to make a decision on it,” Dr Koh said.

“We believe most Malaysians will be receptive towards this idea as the value they receive in return in terms of healthcare services at public healthcare facilities is in multiple folds. In fact, a study done at Unimas found that more than 60% of Malaysians do not mind paying this extra charge for healthcare.”

Giving medical tourism a shot in the arm

Meanwhile, the Association of Private Hospitals Malaysia (APHM) urged the government to consolidate medical tourism in the country.

APHM president Dr Kuljit Singh said the sector was ready to assist the country in receiving medical tourists to receive quality treatment.

“In order to regain some international revenue, private hospitals are ready to accept medical tourists,” he said in a statement carried by health news site Code Blue.

“Therefore, a sizable promotion budget for the Malaysia Healthcare Travel Council will be necessary, since other countries in the region are now promoting medical tourism again, but with necessary precautions.”

Echoing the MMA, Dr Kuljit also believe the government should increase its spending on healthcare to 5% of the nation’s GDP.

He said APHM also hopes that the government will keep allowing private healthcare providers to be competitive in terms of pricing and costs, adding that Malaysian medical tourism “has the best value for money within the region”.

Dr Kuljit also said private hospitals in the greater Klang Valley have treated more than 3,500 non-Covid-19 patients decanted from public hospitals. He added that the process is still ongoing in other states such as Penang, Johor, and Sarawak.

He said the country has about 220 private hospitals, and usual services can resume once the list of outstanding cases is settled.

“Private hospitals are willing to accept patients from public hospitals up to next year in order to clear the long waiting list,” he said.

“The model has worked well so far, and we urge the government to have a budget for this exercise for 2022, with reasonable reimbursements. This will save the government billions of ringgit in building new facilities.” – The Vibes, October 26, 2021