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Globalization and Health
Published in: Globalization and Health 1/2015

Open Access 01-12-2015 | Research

Rethinking health care commercialization: evidence from Malaysia

Authors: Vitalis Chukwudi Nwagbara, Rajah Rasiah

Published in: Globalization and Health | Issue 1/2015

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Abstract

Background

Against the backdrop of systemic inefficiency in the public health care system and the theoretical claims that markets result in performance and efficiency improvement, developing countries’ governments have been rapidly commercializing health care delivery. This paper seeks to determine whether commercialization through an expansion in private hospitals has led to performance improvements in public hospitals.

Methods

Inpatient utilization records of all public hospitals in Peninsular Malaysia over the period 2006–2010 were used in this study. These records were obtained from the Ministry of Health. The study relied on utilization ratios, bed occupancy rates (BOR), bed turnover rates (BTR) and average length of stay (ALOS). The data were analyzed using SPSS 22 Statistical Software and the Pabon Lasso technique.

Results

Over 60 % of public hospitals in Malaysia are inefficient and perform sub-optimally. Average BOR among the public hospitals was 56 % in 2006 and 61 % in 2010. There was excessive BTR of 65 and 73 times within the period. Overall, the ALOS was low, falling from 3.4 days in 2006 to 3.1 days in 2010.

Conclusions

This study demonstrates that commercialization has not led to performance improvements in the public health care sector in Malaysia. The evidence suggests that efforts to improve performance will require a focus directly on public hospitals.
Appendix
Available only for authorised users
Footnotes
1
University of Malaya (2010). “Public and Private Hospitals in Malaysia: A Study of Health care Performance”, project financed through E-Science fund, Ministry of Science, Technology and Innovation (MOSTI), Putrajaya, Malaysia.
 
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Metadata
Title
Rethinking health care commercialization: evidence from Malaysia
Authors
Vitalis Chukwudi Nwagbara
Rajah Rasiah
Publication date
01-12-2015
Publisher
BioMed Central
Published in
Globalization and Health / Issue 1/2015
Electronic ISSN: 1744-8603
DOI
https://doi.org/10.1186/s12992-015-0131-y

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