Health Minister Datuk Dzulkefly Ahmad said his ministry remains steadfast in its decision to mandate the display of medication prices in private healthcare facilities from next year.

KUALA LUMPUR(Nov 26): The Ministry of Health (MOH) remains steadfast in its decision to mandate the display of medication prices in private healthcare facilities starting next year, despite concerns raised by industry players.

Health Minister Datuk Dzulkefly Ahmad said there is a need to take a strong stance as the initiative is part of the government's efforts to address rising medical inflation.

“This is not about drug price control. Facilities are only required to display medication prices so the public can make informed decisions about which facility to choose,” Dzulkefly said during his winding-up speech for the Supply Bill 2025 in the Dewan Rakyat on Tuesday.

Dzulkefly announced last week that the government would implement this requirement under the Price Control and Anti-Profiteering Act 2011 to enhance price transparency in private healthcare facilities. He said the policy would also help verify medication charges in insurance claims, ensuring they align with the displayed rates and preventing arbitrary increases in medication costs.

However, several quarters, including the Malaysian Medical Association (MMA), have slammed the move as impractical, saying it could impose significant administrative burdens, increase operational costs, and adversely affect private general practitioners or GPs.

Malaysia recorded a medical inflation rate of 12.5% in 2023, more than double the global average of 5.6%.

Meanwhile, Dzulkefly reiterated his call for private healthcare facilities to shift from a pay-for-service model to value-based healthcare to help reduce medical costs, noting that the proposal has been well-received by private hospital operators, including IHH Healthcare Bhd (KL:IHH) and KPJ Healthcare Bhd (KL:KPJ).

Value-based healthcare ties service costs to patient outcomes rather than fixed fees. Under this model, pricing is linked to performance or results, rather than the direct cost of the service.

Dzulkefly stressed, however, that the ministry lacks authority to regulate charges imposed by private healthcare facilities, aside from the professional fees outlined in Schedule Thirteen of the Private Healthcare Facilities and Services Act 1998.