Private Hospitals Should Prioritise Long-Term Partnerships With Insurers

KUALA LUMPUR, Feb 28 (Bernama) -- Private hospitals are encouraged to embrace a long-term perspective in their relationships with insurers concerning the rising health insurance premiums rather than concentrate on immediate profits.

Reassurer and Assurance Industry Consultant Dr Mohamed Rafick Khan said private hospitals need to reassess their role as service providers and strive to be genuine partners in the health assurance industry.

“This is not a zero-sum relationship. Private hospitals must manage hospital charges and business costs without exploiting their financial partners. They also need to understand that insurers have their limits and can fold the health business anytime. What will Private Hospitals Malaysia (APHM) members do if that happens?

“As partners in a symbiotic relationship, hospitals and insurers must manage their operations by maintaining a reasonable profit level and seeking growth. With the demand for medical services increasing exponentially, they need to adopt a long-term perspective and a healthy relationship (that) benefits all stakeholders,” he said in a statement here today.

He added that private hospitals must engage in sensible discussions with their bulk paymasters (insurers) to create a win-win situation or operate as providers and Health Maintenance Organisations.

He described hospitals and insurers as partners in a symbiotic relationship in which both sides must balance reasonable profit margins with sustainable growth.

"With the demand for medical services growing exponentially, it is vital that the industry adopts a long-term strategy to ensure a healthy and thriving ecosystem.

"This approach will allow hospitals and insurers to engage in sensible, productive discussions to create win-win scenarios, ensuring the survival of both providers and insurers as integral parts of the healthcare system," he said.

A growing dispute between private hospitals and health insurers in Malaysia has sparked concern about the sector's financial sustainability, with the APHM and the Assurance Association making public statements about rising healthcare premiums and the need for collaboration to ensure long-term stability.

-- BERNAMA