MMA urges MOH to tighten regulations on corporate healthcare setups

The Malaysian Medical Association (MMA) has urged the Health Ministry and Malaysian Medical Council (MMC) to curb alleged corporate interference in clinical decisions, claiming that it exposes patients to increased safety risks.

The group alleged that corporate entities, including healthcare insurers and third-party administrators (TPA), have been increasingly issuing directives prioritising commercial interests over patient safety, and called upon the government to urgently address the regulatory loopholes surrounding corporate healthcare.

“It is equally concerning that corporate organisations and TPAs are increasingly dictating how care is delivered, from what medication should be prescribed to what procedures are ‘allowed’.

“Such interference not only undermines clinical autonomy but also exposes patients to unnecessary risks. When business decisions start replacing medical judgment, the very foundation of our healthcare system is at risk,” said MMA president R Thiruvanakarasu in a statement today.

He stressed that regulatory mechanisms must be strengthened to prioritise patient safety, improve transparency, and hold both medical practitioners and corporate entities accountable for ethical breaches.

Thiruvanakarasu (above) also cited recent examples of these interferences, such as a bank issuing directives mandating prescription of only generic drugs, and a collaboration between an insurance company with a pharmacy group offering 24/7 teleconsultation, including instant prescriptions via a mobile app.

Acknowledging that this was not the first time TPAs and corporate entities had facilitated similar arrangements, he also reminded that the group’s concerns were not with the technology itself, but with the “growing commercialisation of clinical decisions.”

“Teleconsultation plays an important role in improving access and convenience for patients, especially when delivered responsibly and with proper clinical judgment.

“However, when it is driven primarily by commercial contracts and cost-control motives rather than patient safety, it becomes a threat rather than an innovation,” he said.

“MMA supports innovation and digital transformation in healthcare, but technology must serve the patient, not profit,” he added.

Stern warning

Earlier this week, health director-general Dr Mahathir Abd Wahab also issued a stern warning against health insurance companies and TPAs against interfering with clinical decisions in ways that risk breaching the law.

Mahathir stressed that Sections 82 and 83 of the Private Healthcare Facilities and Services Act 1998 (Act 586) had set out clear principles and statutory safeguards to protect clinical decision-making from undue influence.

This followed a CodeBlue report from Oct 1, alleging that a TPA healthcare provider had urged panel hospitals to prioritise local anaesthesia instead of general anaesthesia for daycare procedures and surgeries.

Medical practitioners widely condemned the company directive as a significant threat to patient safety.

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