Private Hospitals Greed For Profit

BY VM CHANDRAN

Private Hospitals do not support regulation for prices of  medicine " - Is it because of greed for big profits????

The Pakatan Government just completed 1 year of administering as the new Government. Prior to coming into power it underestimated the depth of the mess the nation was in. Now trying to take control  there are "checkmate" scenarios in every area. 

It is not confined to taking over a nearly bankrupt country but rather a comprehensive cover beginning with the Royalties, and going on to the bureaucratic Civil Service, the Armed Services including the Police, vested interest groups and extreme-viewed parties. 

There is a "web" in place, intentionally or unintentionally to falter the Pakatan Government from performing or delivering its promises. The key operative idea is to embrass the Pakatan Government as a bunch of non performers.

The difficult aspect of managing the nation is the expectation created before coming to.power. Promises were made and now delivering it is a major "constipated" exercise as the new Government has to find the appropriate "laxative" to smoothen the process without hurting the people. 

Probably that is why Tun Dr M's presence to lead the country is of utmost importance to prescribe the right medicines and put the country on the road to recovery. Sometimes the "medicines" prescribed can be distasteful and may be "painful" to administer, but yet it is necessary and there is a "de minimis" prescription period for things to look better.

This one year of Pakatan Government is part of that period and the length of it depends entirely on the people and the businesses. If businesses do not tighten up and continue the cry for price increases there will be no more  "de minimis" period but rather an indefinite period. Thereafter the curses will be of a higher decibel and further blame would be apportioned on the Pakatan Government, despite it not being caused by the Government.

Now I want to touch on my favourite topic of private medical care, especially the "hugantous" price people pay to Private Hospitals simply because it has a great impact on the cost of living 

Here it is not the Doctors fees, as this probably constitutes  only 15 to 25 % of the charges. Even that is a controlled item ie set by the Malaysian Medical Council. If there is any abuse here, it is an unethical Doctor making unnecessary calls each day for procedures that are not required.

The real "Killer" is the hospital charges from room rates to medicine, medical supplies, usage of equipments,  nursing care and other ancillary services. Working on margins from 60 to 1000%, one wonders where the justification is. A reading of the 12th April Sunday Star  page 29  would give further insight to Private Hospital charges and views of the various fraternities in the Medical field. 

One thing certain with the escalation of private medical costs is that Medical Insurance premium has an annual increase of 15% Roughly 8 out of 10 patients in Private Medical care is covered by some form of Insurance. Hospitals freely and happily do their billing and   Insurance companies merrily pay it. End of the day all claims are bring recouped from the people by spreading it. 

This essentially creates the  "tidak apa" attitude of the patients,  on which the Private Hospitals capitalize. An interesting aspect with private Hospitals is that there are 2 types of billing. The charges are more expensive for an in-patientthan as a out-patient having the same services. This also includes medicine. Most out-patient cases are self-paid and people are more conscious  of the charges. In the case of an in-patient,  the reverse happens ie most cases are paid by the Insurance companies and patients do not feel the pain immediately unless the cover is insufficient.

When the private Hospitals are questioned as to why the charges are high, their usual, and very much standard argument is that they are  comparable to other hospitals in the Region. This argument reminds me of a children's story that "if he is a thief, why can't I be one too". Well!! It does not work that way and it certainly should not. 

Any private Hospital in Malaysia can become the "pace setter" as opposed to being a follower. If we provide very affordable, yet qualitative medical care  then we become the centre for Medical Tourism in the region. Other nations would then follow us.

This means private Hospitals need to have honest self-regulating measures on prices. If it had been done properly, there would not have been such a hue and cry by the people. The exploitation by the Private Hospitals has needed a Government intervention. The free market concept in Private Medical care in Malaysia is being abused and this has put an unnecessary strain on Public Health care. In short  the Private Hospitals invited this trouble onto themselves.

Private Hospital must appreciate that exploiting the suffering because of greed does not pay off on the long run. People would see through this and when they start the cry the Government needs to hear them and act,  especially a new, progressive Government like Pakatan. Introducing a mechanism to regulate medicine and related aspects of the medical business is a brilliant strategy of the Pakatan Government to minimise exploitation with the intention of controlling the spiralling cost of living.

It is ironic that the people who manage Private Health care seem to overlook this point. They must learn to manage to trim their "fat margins" before they think regulating medicine prices will have an impact. The only impact is a reduction in excessive profits, which I am sure the creative minds of the people in private hospital will know how to recoup.

If private Hospitals do not change on cost structures that is billed to patients, I am sure they are in for a rough ride with more innovative measures that may come into place to hinder their process of greed. 

Private Hospitals have a choice to make ie " properly self-regulate cost to patients or be regulated by a series of regulations formulated by the Government with the people's wishes". A very simple basic equation.

V M Chandran

My comments :   Many of the the private hospitals are owned by the GLCs. It is a source of income for the government.  Khazanah is building a new private hospital through its IMU Medical Hospital. 

The large private hospitals are actually GLC owned oligarchies. 
Since GLCs are owned by the government it is closer to monopolies.

The government is screwing the people -  again and again. 

There is simply too much government intervention in the Malaysian economy.
There is no free market. Even private hospitals are dominated by the government.

The government is the regulator as well as the operator of the private hospitals.
That is already a serious contradiction.
Those of you who think that the government is always fair are just stupid. 
Your DNA is of poor quality. 

The government should really get out of business and let market forces take over.
That is what I think.