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Universal Health Coverage in Malaysia
Universal Health Coverage in Malaysia
Universal Health Coverage in Malaysia
Faculty of Medicine,
University of Malaya
Background
Socioeconomic development in Malaysia, over the past few decades, has
brought about significant improvement in the general health status of the
population partly due to sustained investment into social infrastructure such
as schools and health facilities.
The country’s public healthcare system has been gradually improved upon
and now has wide geographical coverage and provides comprehensive care
at minimal fees to the country’s citizens.
2
Background
However, the Malaysian health landscape is changing rapidly. Despite
progressive upgrading of the public healthcare system, demand for private
care has increased over the years leading to rapid expansion of the private
healthcare sector.
Private sector development has been the result of many factors including
efforts by the government to increase private participation in the country’s economy among
others to reduce presence of the government in the economy and also to lower the level and
scope of public spending
the1997 Asian financial crisis which saw health tourism being promoted as a means of survival
for existing private hospitals and later as a means of bringing in foreign revenue to the country
higher demand for private care from the increasingly affluent and discerning society
4
Improvement in health status, Malaysia 1957 - 2010
Note: 1Until 1990, refers to life expectancies at birth for Peninsular Malaysia only. 2In constant 2005 prices. NA=not available
Source: DEPARTMENT OF STATISTICS MALAYSIA 2013. Malaysian Economic Statistics Time Series 2013, Putrajaya, Department of Statistics,
Malaysia.
5
Selected health indicators, 2012
6
Evolution of private health sector
Early private providers were mainly clinics in urban areas and
traditional health care providers
Rapid development started in 1980’s especially in hospital sector
50 hospitals with 1,171 beds or 5.8% of total hospital beds in 1980
209 hospitals with 13,667 beds or 32.0% of total hospital beds in 2012
Mainly for-profit institutions
Concentrated in densely populated urban areas
Perception of higher quality of care
Distributions of certain advanced medical equipment and specialist doctors
Shorter waiting times for treatment
7
Increasing use of private care
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013. Malaysia Health Care
Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala Lumpur: Institute for Health 8
Systems Research.
Paying for private care
25.0 45.0%
Real health expenditures (billion 2010
20.0%
10.0 Paid for mainly
15.0%
10.0%
through out-of-pocket
5.0
5.0%
(OOP) payments
0.0 0.0% Currently OOP
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
payments make up a
Public sources third of total health
Private sources
OOP payments as % of total health expenditures
expenditures
Source: MINISTRY OF HEALTH MALAYSIA 2013. Malaysia National Health Accounts. Health
Expenditure Report (1997-2011). Putrajaya: Ministry of Health, Malaysia.
9
Equity concerns of OOP payments
OOP payments for health are the least equitable manner of
financing health care
lack pre-payment and fund pooling features
necessitate that the ill have sufficient money on hand at the point of needing care or
else they may have to forgo needed care.
12
Source:STUCKLER, D., FEIGL, A. B., BASU, S. & MCKEE, M. 2010. The political economy of universal health coverage. Geneva: World
Health Organization.
13
Access to needed care
UHC requires that the entire population receives health
care that the people need
Different assessment frameworks have been used
Examination of tracer indicators e.g. Immunisation rates
Overall health care utilisation rates
Health care utilisation rates standardised for needs
14
Source: MINISTRY OF HEALTH MALAYSIA 2013. Health Facts 2013.
15
Utilisation of care
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013.
Malaysia Health Care Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala 16
Lumpur: Institute for Health Systems Research.
Hospital admissions
Outpatient visits
0.060 -0.007
Note.
Outpatient Visits Health needs measured using a multi-morbidity index
(0.031 – 0.088) (-0.048 – 0.034) combining reported acute and chronic conditions.
Examination of distribution restricted to those 30 years and
above.
0.017 0.032 Horizontal Inequity Index essentially measures residual
income related inequity in health care use after
Hospital Admissions standardization against health needs. Negative (positive)
(-0.020 – 0.054) (-0.012 – 0.077) values indicate pro-poor (pro-rich) distributions.
19
Private sources of health financing
14.00 45.00%
Real health expenditures (billion 2010 RM)
40.00%
35.00%
10.00
30.00%
8.00 25.00%
6.00 20.00%
15.00%
4.00
10.00%
2.00
5.00%
0.00 0.00%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Household OOP payments Private health insurance
Private Corporations Others
OOP payments as % of total health expenditures
Source: MINISTRY OF HEALTH MALAYSIA 2013. Malaysia National Health Accounts. Health
Expenditure Report (1997-2011). Putrajaya: Ministry of Health, Malaysia. 20
Financial risk protection for health
Low population levels incurring catastrophic health payments and those
incurring catastrophic payments were concentrated among the rich
Levels of medical impoverishment are low, mainly affecting those who were
already poor or near poor
1993 1998 2004
OOP payments
concentrated among
the rich
Predominantly used
for purchase of
private care
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013.
Malaysia Health Care Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala 23
Lumpur: Institute for Health Systems Research.
Universal Health Coverage
Thus far, despite increasing demand for private care and
expansion of private health sector, evidence suggests that
Malaysia has achieved UHC
Access to needed care
Good financial risk protection for health
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UNIVERSAL HEALTH
COVERAGE IN MALAYSIA
- CHALLENGES
25
Ageing Population
Source: DEPARTMENT OF STATISTICS MALAYSIA 2012. Population Projections. Malaysia. 2010-2040. Putrajaya: Department of Statistics, Malaysia.
26
Impact on health care utilisation
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013. Malaysia Health Care
Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala Lumpur: Institute for Health 27
Systems Research.
Epidemiologic Transition
Pattern of diseases
changing from
communicable to non-
communicable diseases
Many are related to
adoption of unhealthy
lifestyles
In 2012, mortality rates
for non-communicable
diseases are about five
Source: WORLD HEALTH ORGANIZATION 2014. World Health Statistics 2014. Geneva: World
times the rates for
Health Organization. communicable diseases
28
Self-reported chronic illness, 2011
Strokes Arthritis
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013. Malaysia Health Care
Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala Lumpur: Institute for Health 29
Systems Research.
Changes in DALYS, 1990 - 2010
Source: INSTITUTE FOR HEALTH METRICS AND EVALUATION. 2013. Global Burden of Disease Profile for Malaysia. Seattle, Washington: IHME. 30
Changes in mortality rates, 1990 - 2010
mortality rates had
decreased for all age
groups except for males
aged between 25 and 44
years
largest increase was for
males aged between 35
and 39 years
largest contributor to this
mortality increase was from
HIV/AIDS
In 1990, 11% of all deaths
among males aged 35 to 39
years was caused by
HIV/AIDS and this
increased to 33% in 2010
Source: INSTITUTE FOR HEALTH METRICS AND EVALUATION. 2013. Global Burden of Disease
Profile for Malaysia. Seattle, Washington: IHME. 31
Impact on UHC
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013. Malaysia Health Care
Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala Lumpur: Institute for Health
Systems Research. 33
Gaps in diagnosis of diabetes, 2011
Known diabetics Actual diabetics
(prevalence 7.2%) (prevalence 15.2%)
Source: HEALTH POLICY RESEARCH ASSOCIATES, INSITUTE FOR HEALTH SYSTEMS RESEARCH & INSITUTE FOR HEALTH POLICY 2013. Malaysia Health Care
Demand Analysis. Inequalities in Healthcare Demand & Simulation of Trends and Impact of Potential Changes in Healthcare Spending. Kuala Lumpur: Institute for Health 34
Systems Research.
Coverage of ART, 2013
Source:MINISTRY OF HEALTH MALAYSIA 2014. Country response to HIV/AIDS. Malaysia 2014. Putrajaya: Ministry of Health, Malaysia.
35
SUSTAINING UNIVERSAL
HEALTH COVERAGE IN
MALAYSIA
36
Health system changes
The Malaysian public healthcare system has been credited to have brought
about UHC in the country.
However, the system’s capacity to cope, in the face of an ageing society with its double burden of
communicable and non-communicable diseases, has been called to question.
The country would need to invest more into the public system than is currently
the case.
In 2011, public sources of financing made up only 2.25% of GDP or 6.62% of general
government expenditures
The 10th Malaysia Plan included a call for greater development of the private
health sector, albeit as an avenue for enhanced national economic growth, and
that there should be “greater collaboration between the public and private
healthcare systems to allow effective delivery, greater efficiency and affordable
costs” with an element of cost-sharing between patients and the government.
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Health system reforms
With higher fees in the private sector, this would effectively translate to a dual
healthcare system
a public health system which provides lower quality care for the poor and a better quality private
health system catering mainly to the demands of the rich
The crux of the issue here is the question of what should be included in the
package of health care services which is understood to be the entitlement of all
in Malaysia under UHC.
If it can be shown that the public healthcare system has indeed made such a package universally
available then it can be argued that this two-tier system will not compromise UHC since the
private system is merely providing services that are over and above the agreed upon minimum
package already available to all.
This package has not really been openly debated in Malaysia.
38
Health system reforms
This public debate should also include discussion of acceptable balance
between public and private provision of care in Malaysia
development of these two sectors may not progress in a synergistic manner.
At this point in time it is not certain whether the proposed social health
insurance scheme would prove to be more equitable than the current taxation-
based one as this is heavily dependent on the contribution rates, co-payments
and benefit entitlements which have not been released.
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CONCLUSION
40
Conclusion
Malaysia is a country where UHC has achieved through an extensive public
healthcare system providing near-free comprehensive health care financed
through general taxation
This public system is facing challenges partially arising from demographic and
epidemiological changes in the country and partially from the expansion of
private provision of care. In spite of this, current evidence points to the
continued maintenance of UHC in Malaysia
Nonetheless, unabated expansion of the private health sector has the potential
to adversely affect universal access to care due to several inherent
characteristics in the provision of private health care including
high user fees
mal-distribution of private facilities favouring affluent urban areas
41
Conclusion
These unwanted effects may be accentuated in the coming years by socio-
demographic changes in the country specifically by the ageing of the population
and adoption of unhealthy lifestyles.
42
THANK YOU
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