Private Health Care Case Study

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We can define that society’s demand for healthcare is emerged by individuals’ desire to have a good and better health generally. Possessing good health enables people to live longer and healthier so that they can function at their desired level of performance. This allows people to spend more of their time to complete what they wish to do and achieve personal contentment, such as having a great career and earning money, spending more time with family or in leisure activities. In this case, private healthcare is here to provide better health services for the public to prolong lifespan as well as gaining great profit from the public to make a two-way benefit for everyone. However, there must be some negative effects that will affect the demand…show more content…
Since the 1980s, the demand for healthcare providers was expanded by the rapid economic growth and the government also started to promote the private provision of healthcare. The growth of profit-based private hospitals accelerated a decade later because of the formalization of privatized hospitals. Many medical services had been privatized and corporatized with substantial expansion in hospital and specialized care. Thus, increasing the supply of private healthcare in Malaysia.
The private healthcare sector in Malaysia was further enhanced after the government introduced the Privatization Master Plan in 1991. Various aspects of governance in public hospitals are planned to be privatized by the government presented in its Seventh (7th) Malaysia Plan (1996-2000) corporatization plans (Malaysia, 1996). The purposes are to maintain qualified, skilled, and knowledgeable human capital while switching gradually its role from the provision of healthcare services to regulatory and enforcement
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Malaysia is still recognized as one of the most developing countries in Asia. This development occurs rapidly and leads to the rise of many factors such as population, medical skills and incomes of people in the country.
Next year, effective from 1st April 2015, a fixed rate of 6% Goods and Services Tax (GST Malaysia) will be executed. Basically, it will be taxed on every taxable goods and services which are necessities for us except for education, transport services, piped water, and medical services. However, medicines and medical supplies will be taxed. Therefore, demand and cost of private healthcare will be affected. The choice of choosing which healthcare center will depend on the patients’ wealth. If Malaysia’s standard of living gets higher in the future, demand of private healthcare will be increased.
Malaysia’s healthcare service is an important sector that is developing rapidly to measure up to the needs of a fast-growing society. According to Frost & Sullivan Asia Pacific’s vice president for healthcare Rhenu Bhuller, in 2016, the private hospital market size is expected to expand to approximately US$5 million at a CAGR of 18 (%) per cent during the period 2011 to 2016. In addition, private hospitals are expected to increase to 239 by

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