The Rakan KKM premium economy model will begin in the first quarter of this year, Health Minister Datuk Seri Dr Dzulkefly Ahmad said. The programme is expected to proceed without further delays after earlier regulatory and operational issues were resolved.

The initiative was originally planned for late 2025 but was postponed to complete legal and administrative requirements.

How The Rakan KKM Model Works

Under the Rakan KKM model, patients may pay additional fees for selected non-emergency services at public hospitals. These include personalised care options, the ability to choose a specialist, and greater ward privacy.

The model is positioned as a premium economy option within the public healthcare system and does not replace standard public services. Emergency care and core public healthcare access remain unchanged.

Revenue Generation And Professional Incentives

Rakan KKM allows participating healthcare professionals to earn supplementary income. It also enables public hospitals to generate additional revenue, which the ministry says can be reinvested into facilities and patient care.

The approach is intended to make better use of existing hospital capacity, including services provided after normal operating hours, while supporting the long-term sustainability of public hospitals.

Part Of Broader Healthcare Financing Reforms

The programme forms part of wider healthcare financing reforms aimed at improving system sustainability and easing pressure on public hospitals. These efforts are being developed alongside changes to private healthcare financing led by the Ministry of Health and Bank Negara Malaysia.

Together, the reforms seek to rebalance demand between public and private care, improve cost efficiency, and expand patient choice without undermining universal access.

Regulatory Requirements Behind Earlier Delays

Dzulkefly said previous delays were largely due to the need to comply with the Private Healthcare Facilities and Services Act 1998, which governs private healthcare operations and the management of government assets.

He said additional time was required to align licensing and contractual documentation between the Ministry of Health and Rakan KKM Sdn Bhd, the entity managing the programme. These requirements have since been addressed.

Initial Services And Pilot Rollout

The programme will be piloted at Hospital Cyberjaya, with the initial phase covering orthopaedic and internal medicine services. Dzulkefly said the rollout is expected to take place by February or at the latest March.

He said the model may be expanded to other public hospitals that are currently under assessment, depending on operational readiness and demand.

Concerns Raised By Stakeholders

Some non-governmental organisations, medical groups, and lawmakers have raised concerns that the programme could contribute to a two-tier public healthcare system or create privatisation pressures within public hospitals.

The ministry has said safeguards are in place and that core public healthcare services will continue to be prioritised.

Other Healthcare Reforms Planned For 2027

Dzulkefly reiterated that other reforms are planned but have not yet taken effect. These include the introduction of a diagnosis-related group based payment mechanism to standardise treatment costs across healthcare providers.

Reforms to the medical and health insurance and takaful sector, aimed at addressing rising medical inflation, are also expected in 2027. These measures have not yet been gazetted and remain in the policy development stage.

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