Over the past decade, the government has announced its concern regarding the escalating cost of healthcare in Malaysia. One aspect currently under intense scrutiny are the prices of pharmaceutical products. In response, a price control mechanism for these products is currently under serious consideration for imposition. Other issues being considered under the same concern are escalating private hospital fees and the imposition of similar price controls for medical devices.
In the face of stagnant healthcare budgets, this concern of escalating costs, and the ever-growing demand for care, value-based procurement has real potential to bring value to payers, patients, and providers in advanced health systems. But to unlock value, healthcare stakeholders must consider what is understood as value and defining and measuring outcomes effectively, choosing appropriate patients, and managing costs efficiently.
The free market approach to the pharmaceutical industry is intended to help foster and encourage innovation and competition, leading to better value for consumers, including the private sector and government.
Value comes from achieving the highest possible health outcomes for patients, measured against the total cost of care. The other key component of value is appropriateness, both of choice of product, and of care. How does innovation fit into this understanding and ensuring that it is taken seriously as a way of improving the results from the investments made in healthcare?
Malaysia’s healthcare system consists of the public and private sector. The Ministry of Health (MOH) is the main agency providing healthcare services in the public sector and has slightly more than 53 percent of market share for expenditure in health. More than 74 percent of the population access public services while the private sector constitutes the rest. Both sectors need to take a value based approach.
This proposed project will provide a platform for participants to discuss and better understand the approaches to maintain or increase quality of care while keeping costs as manageable as possible. It is also an opportunity to discuss health care system sustainability.