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PRESENTATION OUTLINE. Scope of Healthcare FinancingAimObjectivesProblem StatementsCurrent IssuesOptions PrinciplesNHFABenefit PackagesConclusion. SCOPE OF HEALTHCARE FINANCING. Revenue CollectionSource of FinancingStructureCollection mechanismPooling of FundsManaged by an intermediary bodyPurchasing
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1. FUTURE OF HEALTH CARE FINANCING IN MALAYSIA DR ABD RAHIM MOHAMAD
PLANNING & DEVELOPMENT DIVISION
MINISTRY OF HEALTH
18TH JANUARY 2009
3. SCOPE OF HEALTHCARE FINANCING Revenue Collection
Source of Financing
Structure
Collection mechanism
Pooling of Funds
Managed by an intermediary body
Purchasing – from health providers
5. Aim of Healthcare Financing Provision of accessible healthcare and peace of mind
Comprehensive healthcare protection
Improve health through prevention
More choice of service
Right mix of financing option to deliver health care
Government will still be main player
Complemented by NHI
6. 6
7. WHY DO WE NEED CHANGE
8. PROBLEM STATEMENTS Issues raised concerning public medical services
Long waiting time
Postponed cases
Overworked staff in 3rd class wards – impersonal…..
Lack of choice
Inadequate amenities
Issues raised concerning private sector
Exorbitant charges
Increasing private insurance premium
adverse selection vs cherry picking
Appropriateness of care vs. overservicing
9. PROBLEM STATEMENTS 2 National Health Account Study 2006
Out-of-pocket (OOP) spending in Malaysia is high (40% of THE)
RM 9805 million
OOP spending in developed countries is low <20%
Health Expenditure trend in Malaysia
Equity
High cost private healthcare– available only to those who can afford, insured or covered by employer
Fairness in financing – high OOP payment (inequitable financing and can lead to impoverishment due to catastrophic health expenditure)
Economics
More efficient use of resources (especially HR)
14. Per Capita Spending on Health, 1997-2006 (RM, Nominal Value)
18. Private Health Expenditure (PHE) (MNHA 2006)
Total PHE: RM 13,393 million
OOP: RM 9,804 million (73%)
OOP from 2003 to 2006: rising trend (quantum)
19. 7. Challenges of globalization & liberalization:
Cross border flow (human, life-stock, etc)
Transmission of diseases
Cross border transactions and practice – ethics, credentials and quality
Foreign workers
Utilizing subsidised services
Health insurance coverage not mandated currently
Outsourcing / offshore activities
Health tourism – competing with local consumers for resources
20. Health Expenditure Trends in Malaysia (MNHA 2006) Increasing Total Expenditure of Health (TEH)
Plateauing TEH as % of GDP
OOP rising
Private Expenditure exceeded public expenditure since 2004
21. WHERE DO WE GO FROM HERE?
22. OPTIONS Change present system
Introduce NHI through community rating
Further integrate public-private health sectors
AND / OR
Strengthen present system
Improve efficiency and quality of public and private sectors
Further regulate private sector to improve quality and contain cost
23. Financing Strategy Introduce a National Health Financing Mechanism & restructuring of MOH hospitals and clinics.
Develop National Health Insurance with government intermediary body (National Health Financing Authority) as a single fund manager.
25. PROPOSAL:NATIONAL HEALTH FINANCING AUTHORITY (NHFA)
27. PROPOSAL:- PREMIUM LEVEL & INCENTIVES AFFORDABLE & ACCEPTABLE PREMIUM
According to ability to pay (Progressive)
GOVERNMENT ASSISTANCE
For the disadvantaged group.
30. ROLL-OUT OF NHFM Recommendations of previous consultants
Adopt incremental approach
E.g. Population coverage (formal vs. Informal sector)
Service coverage (outpatient vs. inpatient)
Accessibility (public vs. private)
Path dependent – while adopting good practices of other countries
Implement certain activities during 9MP
Case-mix
Accuracy of Diagnosis
Unit costing
Social Advocacy (meeting with stakeholders)
31. Assurance Government will still be main source of healthcare fund
Government will subsidise the disadvantaged.
MOH will monitor the following:
Access
Utilization
Quality and safety
32. Press comments on Proposed Privatisation of IJN by IJN staff “Hospital staff deny demand for higher pay linked to proposal. Medical consultants at the National Heart Institute (IJN) have reiterated their commitment to serve IJN in its current form”
“However, the perception that the privatisation proposal is in response to demands for higher remunerations by its medical staff is misconceived and must be corrected accordingly to safeguard and preserve the trust placed upon us by our patients”
The Star, 20th December 2008
33. Press comments by IJN pioneer surgeon “It (IJN) was never meant to be commercial institute. It was meant to be a centre of research, a premier academic institute.”
“Therefore, I am rather suspicious of the privatisation idea. It is not as if the hospital is not doing well. Ideally, a health institution such as IJN should be physician-led”
Tan Sri Dr. Yahya Awang
The Star, 21st December 2008
34. CONCLUSION Implementation of the NHFM should be:
Incremental
Path Dependent
Most appropriate for the country (Creative and Innovative)