Can Diagnosis-Related Group Pricing Curb Medical Inflation?

In response to public outcry over rising medical costs, Prime Minister Datuk Seri Anwar Ibrahim this week announced that the government will study options to standardise the cost of private healthcare, including through the diagnosis-related group or DRG system, which could enhance transparency of patient treatment charges. To what extent could the DRG-system moderate medical inflation? Prof. Emeritus Dato’ Dr Syed Mohamed Aljunid of the Malaysian Health Economic Association weighs in.

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