PKR MP’s Bold Proposal: Delisting Hospitals To Lower Healthcare Costs
The parliamentary proposal aims to moderate healthcare pricing that many believe is influenced by shareholder profit expectations.
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A thought-provoking proposal in Parliament could influence how healthcare is priced in Malaysia.
Bayan Baru MP Sim Tze Tzin from Penang has suggested that private hospitals be barred from listing on the stock market, which he believes could impact patients’ payments during medical visits.
During Monday’s parliamentary session (3 March), Sim highlighted concerns about how quarterly profit expectations might affect healthcare pricing.
Many Malaysians have experienced the shock of receiving unexpectedly high medical bills, prompting questions about the factors driving healthcare costs.
Sim argued that when hospitals answer to shareholders every three months, patients become profit centres rather than people needing care, referencing South Korea’s model, where hospital operators are prohibited from going public.
Importantly, Sim’s proposal doesn’t call for complete nationalization of healthcare.
Instead, it suggests that Khazanah Nasional and the Employee’s Provident Fund (EPF) consider delisting private hospitals they already have stakes in, such as IHH Healthcare (which runs Pantai and Gleneagles hospitals) and KPJ Healthcare.
Ahli Parlimen Bayan Baru, Sim Tze Tzin cadang Kerajaan menghalang hospital² daripada disenaraikan di Bursa Saham
— Ekonomi Rakyat (@EkonomiRakyatMY) March 3, 2025
Menurut beliau, langkah ini telah dijalankan di Korea Selatan untuk mengelakkan syarikat² penjagaan kesihatan dalam memaksimumkan keuntungan pic.twitter.com/4WY86e0WQn
A Path Through the Valley of Affordability
In one of his more straightforward examples, the former Deputy Minister of Agriculture and Agro-based Industry pointed to the significant price difference between medical gloves at private hospitals—reportedly costing RM20 per pair—and retail markets, where boxes are available for around RM10, despite Malaysia being one of the world’s largest glove manufacturers.
This example highlights broader questions about medical pricing that many patients have encountered when reviewing itemized hospital bills.
Proponents suggest that if implemented, Sim’s proposal to limit hospital stock market listings could help moderate healthcare costs that some believe are influenced by profit expectations.
Bila syarikat insurans dan takaful semakin tamak, mereka mula tawarkan pelan perlindungan yang tak masuk akal dan ramai yang akan terjerat.
— TikTok Berguna (@TikTokBerguna) June 17, 2024
Hospital swasta pula tak mahu berdiam diri bila dengar berita ini, mula menaikkan kos perubatan.
Dan cycle ini berulang setiap tahun pic.twitter.com/LrYVHUK0NK
Such a change might create more affordable treatment options for Malaysians who must choose between public healthcare facilities—which sometimes face capacity challenges—and private hospitals, which offer prompt service but often at premium prices.
The issue is an ongoing focus for the PKR lawmaker, who recently highlighted the approximately 18% increase in medical insurance premiums over three years.
According to his analysis, this rise is primarily driven by medical inflation that continues to outpace general inflation rates.
The Economics of Healing
Meanwhile, healthcare providers note that hospital pricing reflects numerous factors beyond profit considerations, including regulatory compliance, specialized staffing, advanced equipment, and comprehensive care environments.
Private hospitals in Malaysia operate on razor-thin profit margins, typically ranging from 10% to 15%, significantly lower than the industry average due to rising operational costs and medical inflation.
While the average profit before tax for hospitals is around 38%, profit margins remain challenging because the average inpatient bill rises slightly below the rate of medical inflation.
Drug sales constitute the largest portion of profits for these hospitals, highlighting the complex interplay between operational costs and patient billing practices.
As stakeholders present competing narratives about healthcare economics, the debate over balancing quality care with affordability continues.
Rakyat semakin terbeban dengan kenaikan insurans perubatan📈 . Tapi kenapa harga makin naik, sedangkan hospital swasta & insurans hanya untung sedikit?
— pendapat 🇲🇾 (@pendapatmy) March 2, 2025
Adakah kerajaan sedang melakukan yang terbaik untuk menangani kenaikan insurans perubatan? 🏥
Tak pasti? Baca thread ini 👇
READ MORE: Medical Insurance Premiums: Understanding The RM200 To RM1,056 Increase
Parts of this story have been sourced from Code Blue and The Edge.
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