1care for 1malaysia

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1Care for 1Malaysia: RESTRUCTURING THE MALAYSIAN HEALTH SYSTEM Presented at the 10th Malaysia Health Plan Conference by

Dato’ Dr Maimunah bt A Hamid Deputy Director General of Health (Research and Technical Support)

2nd February 2010

1


Presentation Outline • Current Health System & Challenges • Proposed Model for Malaysia – Delivery system & Governance • Primary Health Care • Secondary Care • Human Resource Development

– Financing

• Implications 2


CURRENT HEALTH SYSTEM & CHALLENGES

3


Overview of Current Malaysian Health System

4


Access to Health Providers in Malaysia MOH

Other agencies & Private sector

Rural/Community Clinics 1 : 4,000 population

Others

University Hospitals Estate

Health Clinics/Centres 1 : 20,000 population

GPs

PRIMARY HEALTH CARE

Hospitals without Specialists

Orang Asli Facilities

Hospitals with Specialists

Private Hospitals

Hospitals with Subspecialty

Medical Corps

SECONDARY/TERTIARY CARE

By passing


Public & Private Sector Resources and Workload (2008) 11%

Health clinics (with doctors)

802

6371

38%

Outpatient visits (m)

38.4

62.65

143

209

41%

No. of Hospitals 78%

Hospital Beds

11689

41249 74%

2199310

Admissions

754378

55%

12081

Doctors (excl. Houseman)

10006

45%

13.54

Health Expenditure (RM billion) (2007) Public

Private

0%

20%

16.68 40%

60%

80%

100% 10

Source: Health Informatics Center (HIC),MOH 6


Current Functions of MOH Within the dual health care system, MOH is Funder, Provider and Regulator • •

Health Policies & Planning Regulation & Enforcement – – – – –

Monitoring & Evaluation – – – –

• • •

Personal care Public Health Pharmacy Technology Medical Devices Quality Assurance Health Technology Assessment Patient Safety Guidelines and Standards

Training Research & Development Health Information Management

Primary Care Services – – – –

Secondary & Tertiary Services – –

• • • • • •

Out-patient services Maternal & Child Health Health Education Home Visits & School Health In-patient services Specialist care

Pharmaceutical Services Oral Health Services Imaging and Diagnostics Laboratory Services Telehealth & Teleprimary care Public Health Activities – Communicable Disease – Non-communicable Disease


Current Challenges in Malaysian Health System 1. 2. 3. 4. 5. 6. 7.

Lack of integration Changing trends in disease pattern & socio - demography Greater expectations from public Dependency on govt. subsidised services – Issues of economic inefficiency Limited appraisal & reward systems for performance Conflicts of interest Accessibility & affordability - Discrepancy of health outcomes

8.

9.

Limited coverage of catastrophic illness e.g. haemodialysis, cancer therapy, transplants etc. Private spending for health overtaken public since 2004 8


Public Private Expenditure on Health, 1997-2007 (2007 RM Value) Source : MNHA (2007) 2.5

16,000

1.5 1.5

1.6 1.5

1.6

1.6

2.0

1.9

1.9

16,682

14,360

14,000

RM million

2.6

2.2

1.7

1.6

2.4

2.1

2.1

1.8

1.7

2.3

2.1

2.1

2.4

1.0 13,546

13,034

0.0

12,067

12,000

11,542

11,558 11,740

10,271

-1.0

10,000 9,083

8,727

-2.0

8,000

7,320 7,208

6,351 6,000

10,079

5,806

5,616

6,571

-3.0

6,824

5,970

5,658

5,538

4,000

-4.0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Year PUBLIC (RM million) real RM2007 base

PRIVATE

9 Public as % GDP

Private as % GDP

Percentage (%)

18,000


Ratio of Out-of-Pocket (OOP), Public & Private Expenditures 100% 90%

80% 70% 60%

18.6

23.0

1.3 14.5

7.5 1.8

50%

44.2 0.7

4.5 3.3

0.4 7.2 7.7

20.8 0.1

4.1

12.7

56.3

34.5

32.3

17.1

40% 30%

32.0

51.4

20%

40.5

25.6 0.0

3.7

23.3 0.4

4.0

17.5 21.6

30.2

10%

14.5

22.5

Gen Gov Revenue Social Security External Resources Other Other Private Private (Employers) Private Private Pooled Insurance Private OOP

0%

Low Income

Lower middle Income

MALAYSIA Malaysia (2006)

Upper middle Income

High Income

GLOBAL 10 Source: World Bank, 2005


Total Expenditure on Health (TEH) as Percentage of GDP (2005) TEH as % of GDP, 2005 12.0

11.2

10.0

8.6 8.0

6.6 6.0

4.8 4.2

4.2

4.7

4.0

2.0

0.0

Low Income

Lower middle Income

Malaysia

Malaysia (2007)

Upper middle Income

High Income

GLOBAL

11 Source : World Bank, 2005


Government Spending on Health as % of Total Government Expenditure (2006) Government Spending on Health as % of Total Government Expenditure 25

20

15

7.0%

10

5

Government Spending on Health as % of Total Government Expenditure

0

Source : WHOSIS data 2006


Health expenditures per capita, 2009 prices 2000

In the future with no restructuring of the health system…..

1800 1600 1400 1200 1000 800 600 400 200

20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19

0

GGHE pc

GGHE PvtHE -PvtOOP -PvtOther

PvtHE pc

2004 50% 50%

In absence of health financing reform, health system likely to become increasingly privatized… both in funding and service delivery……

2009 45% 55%

2018 35% 65%

40% 15%

47% 17%

Source: Dr Christopher James, WHO WPRO – Projections from MNHA data


The Combination of Organisational and Financial Reforms A Nation Chooses Depends on What Goals A Nation Wants to Achieve


Aligning Our Health System To Our Country’s Aspirations New Economic Model ? Malaysia Economic Monitor: Repositioning for Growth - 4 Key Elements (World Bank, November 2009) 1.

Specialising the economy - high value-added, innovation-based, strong growth potential, enabling environment internally-competitive appropriate soft and hard infrastructure knowledge economy

2.

Improving the skills of the workforce – specialised and skilled labour moving up the value-chain, social and private returns to education and skills upgrading, increase productivity

3.

Making growth more inclusive – Strong inclusiveness policies, equity, helping household cope with poverty through health care

4.

Bolstering public finances – broaden the country’s narrow revenue base, lessen subsidies, reduce the crowding-out of private initiatives, shift expenditure to areas of specialisation, skills and inclusiveness

15


PROPOSED MODEL for MALAYSIA

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1Care Concept

• 1Care is restructured national health system that is responsive and provides choice of quality health care, ensuring universal coverage for health care needs of population based on solidarity and equity


Targets of 1Care • • • •

• • • • •

Universal coverage Integrated health care delivery system Affordable & sustainable health care Equitable (access & financing), efficient, higher quality care & better health outcomes Effective safety net Responsive health care system Client satisfaction Personalised care Reduce brain-drain 18


Features of Proposed Model: BETTER than current system • Strengths of current system will be preserved • Stronger stewardship role for MOH & government • Separation of purchaser-provider functions • 1Care - Integration of health care providers & services

• More responsive to population health needs & expectation through increased autonomy • Payments linked closely to performance of provider 19


DELIVERY SYSTEM & GOVERNANCE


FUNCTIONS WITHIN THE RESTRUCTURED HEALTH SYSTEM Professional Bodies

Independent bodies

-MMC -MDC -Pharmacy Board - Others

NHFA

• GOVERNANCE & STEWARDSHIP • POLICY & STRATEGY FORMULATION • STANDARD SETTING • REGULATION & ENFORCEMENT • MONITORING & EVALUATION • PUBLIC HEALTH • RESEARCH • TRAINING

MOH

-Drug Regulatory Authority (DRA) -Health Technology Assessment (HTA) -Medical Research Council (MRC) -Patience Safety Council -Medical Device Bureau -National Service Framework (NSF) (Quality) -National Health Promotion Board - Food Safety Authority - Others

MHDS SERVICE DELIVERY • PRIMARY CARE • HOSPITAL CARE • OTHER SERVICES


CHANGES TO CURRENT FUNCTIONS OF MOH WITH PROPOSED RESTRUCTURING Professional Bodies -MMC -MDC -Pharmacy Board - Others

Independent bodies

MOH

NHFA

PUBLIC HEALTH

MONITORING & EVALUATION

-Disease Control -Food Safety & Quality -Health Education

-HIC - MNHA - Surveillance - H20 Quality - TCM

-Drugs - Quality - HTA

POLICY MAKING

-Patient Safety - Services - Research - TCM - Human Resources Development - Finance - Infrastructure & Equipment -HTA - Quality - ICT

REGULATION & ENFORCEMENT

-Drug Regulatory Authority (DRA) -Health Technology Assessment (HTA) -Medical Research Council (MRC) -Patience Safety Council -Medical Device Bureau -National Service Framework (NSF) (Quality) -National Health Promotion Board - Food Safety Authority - Others

TRAINING

RESEARCH

-Basic -Post-Basic Enforcement

PERSONAL MHDS CARE

Primary

Legislation

Regional Authority

Hospital Regional Authority

-Professionals - Allied Health -Nursing

PHCT

PHCT

PHCT


Scope of Autonomy for Independent MOH-owned bodies • Not-for-profit

• Accountable to MOH • Independent management board • Self accounting – manages own budget • Able to hire and fire • Flexibility to engage and remunerate staff based on capability and performance 23


SERVICE DELIVERY & PATIENT FLOW Patient

PHCP Public

Additional services (Out of pocket or private health insurance)

Refer Hospital

Private

Receive treatment

Private

Admit

Return to referring PHCP

Home

Public


FUNDING & GOVERNANCE NHFA

MOH

MHDS

Regional Health Authority

PHCT PHCT

PHCT

Outpatient and Hospital care free at point of service Minimal co-payments e.g. for dental & pharmacy


Primary Health Care Primary Health Care • Thrust of health care services - strong focus on promotive-preventive care & early intervention

• Primary Health Care Providers (PHCP): – PHCP are independent contractors – Family doctor & gatekeeper  referral system

• Register entire population to specific PHCP according to location of home/work/schooling

• Dispensing of drugs by independent pharmacies • Payment - capitation with additional incentives – casemix adjustments 26


Primary Health Care Provider • PHCPs are led by Family Medicine Specialists (FMS) • The FMS is registered with the MMC and the National Specialist Register • Secondary care specialist are not registered as PHCPs • Conversion of GPs to FMS – thru x months training from accredited training centres/providers

• Over time only Primary Health Care Specialists are allowed to open a PHCP practice • Accreditation of facilities, credentialing and privileging of PHCP will be done 27


Hospital Services • Regional arrangement for hospital services & set-up to better serve the needs of local community in each region • Patients referred by PHCP • Autonomous hospital management • Financing through casemix adjustments – ? Global budget for public hospitals – ? Case-based payment for private hospitals

28


Human Resource • Integration of public & private health care providers → increase access for population • Gaining of number & skills through integration • Facilitate providers working in both sectors – suitable arrangements have to be developed • Harmonise/equalise remuneration for public & private • Pay for performance -

Incentives are being considered to promote performance

-

Incentives for performance over benchmark, people who work in remote areas


Role of Allied Health • Utilisation of allied health personnel will reduce cost & support the role of health professionals

• This will contribute towards overcoming the shortage of human resource • In line with 1Malaysia Clinic launched by PM, it is possible for allied health personnel to carry out certain functions, such as: – Preventive care by nurses – Triaging, basic treatment e.g. T&S, STO, etc by nurses & AMOs.


Human Resource: Training •

MOH still determines the human capital needs of the country

Within integrated system in-service training has to be planned between public & private facilities

? outsource training to institution or teaching facilities

? Open system for formal post-graduate training of doctors

- Universities need to review current programme •

Credentialing & Privileging – Independent Body – e.g. National Credentialing Committee (NCC), Academy of Medicine etc.

Continuing Professional Development (CPD)

– Current system • fund - health facilities / self funded – Compulsory – minimum CPD points/per year for APC – Use for recertification.

31


FINANCING

32


Financing Arrangements • Combination of financing mechanisms – Social health insurance (SHI) + General taxation + minimal Co-payments for a defined Benefits Package – Pooled as single fund to promote social solidarity and unity as per 1Malaysia concept

33


A Summary of Ranking of Different Health Financing Methods Equity

Risk Pooling

Reduce Risk Selection

Efficiency*

General Rev

General Rev

General Rev

User Fee, OOP, MSA (Low administrative cost but sometimes hard to collect – so higher cost)

Social Ins

Social Ins

Social Ins

Social Ins

Comm Fin.

Comm Fin

Comm.Fin

Comm. Fin.

Private Ins

Private Ins

Private Ins

Private Ins (High Administrative Cost)

User Fee, OOP, MSA

User Fee, OOP, MSA

---------------

General Rev/ Direct Provision (Inefficient ) – Generally – may not be the case in Malaysia

BEST

WORST

*Efficiency factors include technical efficiency and administrative costs.


Social Health Insurance • SHI is another financing approach for mobilising funds & pooling risks, earmarked tax

• Community-rated, not risk-rated as in private health insurance (PHI) – all are eligible • High levels of cross-subsidization – Rich to poor – Economically productive to dependants – Healthy to ill

• 3 distinct characteristics – Compulsory enrollment, payment of premium. – Benefits eligible for those who contribute only – Benefit Package is predetermined

35


Social Health Insurance Advantages

Disadvantages

• •

• •

Pools Risk & Resources Mobilise funds designated for health system - public acceptance Planned prepayment - OOP Equity – payment according to ability to pay – improve equity in access

Promote health system development – health information system – rational planning of health services & resources

• •

• •

Challenges in coverage of informal sector & determining the poor Need to have a good administrative capacity SHI requires legislation to provide a legal framework for authorising mandatory, earmarked contributions Need accurate estimates of the benefits package & costs PPM that shifts financial risk of provision to the provider, e.g. capitation need to be continuously monitored & evaluated Abuse of SHI fund may be a threat 36


Financing Arrangements • Combination of financing mechanisms – Social health insurance (SHI) + General taxation + minimal Co-payments for a defined Benefits Package – Pooled as single fund to promote social solidarity and unity as per 1Malaysia concept

• Social Health Insurance contribution – mandatory – SHI premium – community rated & calculated on sliding scale as percentage of income – From employer, employee & government

• Government’s contribution (from general taxation) covers – Public health & other MOH activities – PHC portion of SHI for whole population – SHI premiums for registered poor, disabled, elderly (60 years & above), government pensioners & civil servants + 5 dependants – Higher spending by govt – 2.85% (In 2007 govt spending 2.11%)

37


Main Sources of Health Financing

38


Total Health Expenditures with and without 1Care restructuring Constant 2009 prices (millions)

90,000

80,000

70,000

60,000

50,000

40,000

30,000

2009

2010

2011

2012

No major changes

2013

2014

2015

1Care

2016

2017

2018


IMPLICATIONS

40


Implications of Proposed System • • • • • • • • • •

Public-private integration Stronger governance role in a slimmer MOH Defined practice standards Benefits package Payment by performance Registries for providers and patients Gate-keeping role by primary care providers Autonomous management public healthcare providers Services free at point of care – minimal co-pay Mandatory regular contribution (prepaid) under SHI

• More funding of health with increased coverage 41


Benefits to Individuals • • • • • • • • •

Access to both public & private providers Reduced payment at the point of seeking care Care nearer to home Increased quality of care & client satisfaction Personalised care with specific PHCP Access for vulnerable group Better health outcome Higher work productivity All (except govt covered groups) will have to pay to be within the system 42


Benefits to Employers • Relieve burden to reimburse worker or give loan for medical spending • Relieve burden to cover work and non-work related illnesses (beyond SOCSO)

• Pay low contributions to cover employee and family • Reduce administration to process medical benefits • Avoid systems in which unnecessary care leads to higher expenditure e.g. PHI, MCO & Panel doctors

• Healthier workforce and higher productivity • All companies have to contribute – ? tax rebate 43


Benefits to Health Care Providers • Bridge the gap between remuneration and work load among health workers in the public and private sectors. • Creates more effective demand for healthcare • Re-address distribution of health staffs through the provision of specific incentives. • Defined standards of care • Ensure appropriate competency through training credentialing and privileging • Reduce brain-drain, increase available pool of providers 44


Benefits to the Nation • Strengthen National Unity - 1Care for 1Malaysia • Ensure social safety nets for lower & middle income - Reduce OOP at point of seeking care - Address equity & access of care - Ties-in with current policies of govt

• Contain rapid growth in health care cost • Stimulate health care market – create more effective demand for health care, multiplier effect

• Capitalise on liberalisation and global health care market • Reduce dependence on government 45


Cautions & Concerns • Manage change effectively

• Need for strategic communication of issues and plan • Longer term planning. • Adequate time for phased implementation including preparation of manpower, ICT & infrastructure

• Increase investments to effect change • Acts and Regulations to enable change • Current economic & global situation may not be an ideal time for change but is an ideal time for planning & preparing the groundwork 46


THANK YOU

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