THE spike in private healthcare costs cannot be attributed to market forces or supply chain inefficiencies.
A study by Bayan Baru MP revealed many instances of profiteering and a disregard to the "Hippocratic Oath" of treating all ill patients.
Sim Tze Tzin told Parliament that the study revealed profiteering on the side of hospital supplies and services and, in some instances, specialists fees were lower than the equipment charges prescribed in hospitalisation bills.
He made available his speech to the media here.
Citing an example on surgical face masks and rubber gloves, he said the charges imposed by private hospitals were highly unreasonable compared to market prices.
"A box of face masks now costs RM5 for 50 pieces, but private hospitals charge RM2 per mask, marking an increase of up to 2,000%. Surgical gloves, on the other hand, are sold at RM10 per box of 100 units, yet hospitals charge RM20 per pair, though Malaysia is the world's largest producer of plastic gloves. This is excessive profiteering."
Elaborating, Sim cited the case of an elderly patient who underwent surgery and was warded for two days and charged up to RM39,000.
"The consultant's fee is controlled at only RM7,800, but the uncontrolled hospital supplies amounted to RM32,000. None of this is regulated," said Sim, who is the PKR strategic planning director, and who has relatives, who are doctors.
"People do not voluntarily seek hospitalisation, and no one wants to fall ill, but they end up as victims," he said.
Sim offered a few solutions to the present escalating healthcare costs, especially on private care and nursing facilities.
Sim said that Malaysia should emulate South Korea's policy of banning private healthcare from being listed on the public bourses.
"We should delist private healthcare entities from the stock market."
He said this is important as private hospitals in the country appear to operate with a profit-oriented approach, which in turn leads to high service charges for patients.
"Why are hospital charges so expensive? The reason is that these private hospitals operate for profit and are listed on Bursa Malaysia, requiring them to report their earnings every three months.
"That is why they need to generate high profits, increasing prices here and there. We must understand that this is an unhealthy situation. Hospitals should be saving lives, not be treated as trade commodities," Sim said.
Addressing the issue of high and uncontrolled treatment charges imposed by private hospitals, Sim noted that only 30% of hospital bills are regulated under the Private Healthcare Facilities and Services Act 1998 (Act 586), while the remaining 70 percent, covering supplies and services provided by hospitals, remains unregulated.
Sim urged the authorities including the enforcement division of the Domestic Trade and Living Costs Ministry to inspect private hospitals by utilising the Price Control and Anti-Profiteering Act 2011 (Act 723).
"The minister must use Act 723. We are not trying to 'strangle' (choke) them, but to 'regulate' (control). If the charge was RM1 or 50 sen, that would be reasonable, but RM20 for a pair of rubber gloves is just too much.
“I remember a few years ago when the price of eggs increased from 40 sen to 50 sen, the ministry stepped in to control prices but now, why can't we regulate private hospitals that are making up to 2,000% profit?
Attempts are being made to reach out to the Malaysian Medical Association and the Penang - based Federation of Private Medical Practitioners for their input on this matter. - March 4, 2025.
