The Future Of Private Healthcare

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

The future of the private healthcare services in Malaysia expected to continue to expand in its size because of the development of the country. 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

Factors that increase the demand of private healthcare are growth of population and medical tourism. The steep cost at private healthcare centers is the main factor of the decrease in demand of private healthcare. The supply of private healthcare in Malaysia is mainly affected by the changes of government policies, and rules and regulations.

Private healthcare industry leaders must face up to the various obstacles, such as tackling rising healthcare cost and increasing resources towards a sustainable healthcare system, satisfying increasing needs, wants and demands due to growing wealth (rapid economic growth) boosting demand and increasing public expectations, and managing high-priced, overutilization and underutilization of new technologies and medical advances.

Providers need to specialize more in their skills or focus on differentiation in their services. Malaysian healthcare services will need to maintain their quality of the healthcare services and continue to develop medical skills. Therefore, they can gain the patients from other countries like Australia and North Asia as a medical tourism. It attracts people especially foreigners by many beneficial points such as its cost of services and multi-cultured society. This leads to the expansion of size of the private healthcare