Hospital pricing pressures likely to begin shortly with maturing insurance sector.
Malaysia’s retirement institutions continue to take active positions in their investments, and the EPF is no exception, as shown in the article below. But maybe it’s time someone took a second look at private healthcare sector trends. Columbia Asia Sdn Bhd has had success in a few hospitals in Malaysia, and the growth in system financing (in this case the growth of health insurance) is certainly positive. But we might want to look at what impact this growth in Malaysia’s insurance sector will have on hospitals and associated healthcare costs.
The downward pressure on pricing from insurance companies will begin shortly. No sector, with 65% ownership is going to let pricing move without its input. And hospitals are the low hanging fruit here. Owners of hospitals will likely begin to feel the squeeze with hospital management companies winning out. Columbia Asia may want to re-assess where it wants to reside as the market matures…..HK
12-04-2007: Columbia Asia looking to build more hospitals
By Alfean Hardy
Columbia Asia Sdn Bhd, which is 30%-owned by the Employees Provident Fund (EPF), is looking to grow the number of its hospitals nationwide to cater to a growing market for health insurance-financed medical care.