18th June 2025 - 2 min read
Health Minister Datuk Seri Dr Dzulkefly Ahmad has denied that Malaysia’s upcoming diagnosis-related group (DRG) payment system will exclude private hospitals, calling such claims “completely wrong” and stressing that the system is intended for both public and private healthcare providers.
Speaking to reporters after Bank Negara Malaysia’s Sasana Symposium, Dzulkefly reaffirmed the government’s commitment to implementing the DRG system as a nationwide initiative aimed at creating a more equitable and standardised approach to healthcare payments.
He added that the DRG model would ensure consistency in charging practices by aligning payments with specific diagnoses, procedures, and complications, helping to avoid arbitrary pricing.
“You have a sense of how to get the charges or remuneration of all the providers,” he explained, highlighting the system’s potential to rein in escalating costs. “Of course, particularly in private hospitals, because we want to contain medical inflation from the private sector.”
While reiterating the government’s intention to involve private hospitals, Dr Dzulkefly acknowledged that the timeline and implementation details are still being worked out. “The question is how and when,” he said, noting that the matter involves coordination between three key bodies: the Ministry of Health, the Ministry of Finance, and Bank Negara Malaysia.
His remarks come in response to recent reports suggesting that the first phase of the DRG roll-out, now scheduled for the end of 2025, will apply only to selected public hospitals, excluding private institutions where healthcare inflation is most pronounced.
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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