GST: Cost of private healthcare will increase - Subramaniam

It is a growing concern among the public after Health Minister Datuk Seri S.Subramaniam confirmed yesterday that the cost of private healthcare will increase after the GST comes into effect next year.

Subramaniam however said that the increased rates are still being fine-tuned with the Customs Department. A series of figures are still being hashed out and that no final decision has been reached.

He was responding to the Association of Private Hospitals of Malaysia (APHM) on Tuesday cautioning the public to be prepared to fork out an additional five per cent for private hospital services in April.

“The increasing price due to the GST will be a disappointment to the majority of the people but we should be prepared ourselves for this,” said Kelana Jaya Medical Centre (KJMC) finance manager, Norliza Razali.

“As a private hospital, we try to be fair to all the patients so that they are not going to be affected due to the increasing costs.

“If not, there is possibility that the patients might consider other options to avoid from paying more than they could,” she added.

She also insists that the information regarding the GST affecting the medical sectors should be made transparent to the public so that it will not create a bigger confusion in the future.

“The public have to be aware that not all the drugs and treatments are GST-exempted. It is important to make it clear to the public so that the general perception towards the private hospitals is not negative.

Norliza also said that necessary action will be imposed by the private hospitals to ensure that patients are not severely affected after the GST takes place.

“I believe we need a certain mechanism to decrease the additional costs of treatments offered. We will try our level best to treat patients and see the overall impact to the society so that it will not burden the patient in terms of costs and payments,” she said, when contacted by Astro AWANI today.

Prime Minister Datuk Seri Najib Tun Razak in his Budget 2015 speech said medicines on the National Essential Drug List (NEDL) would be GST-exempted and that patients will not be burdened by additional taxes for their treatments.

On Dec 15, APHM has informed the public that an additional five per cent for private healthcare will be imposed after the GST is introduced, citing the Customs Department’s refusal to exempt the tax for the doctors they hire.

Two days after APHM announced this new development, the Minister confirmed it stating that the cost of private healthcare may see a five per cent hike after the GST is introduced