The shift is aimed at enhancing patient outcomes and achieving greater cost efficiency in Malaysia

KUALA LUMPUR, 29 July 2024 – IHH Healthcare Malaysia, a forerunner in practising value-driven outcomes, is set to transition to value-based healthcare, in line with the Health Minister’s call to shift from a “pay-for-service” to a “pay-for-outcomes” model.

This move aims to improve patient outcomes while reducing costs associated with unnecessary medical procedures.

Jean-François Naa, Chief Executive Officer of IHH Healthcare Malaysia said, “In an era where healthcare costs are rising due to an aging population, the prevalence of chronic diseases and the use of advanced technologies that offer better outcomes yet tied to higher costs, we are committed to providing value-driven care that is patient-centric, cost-efficient and enhances patient health.”

Since 2019, IHH Healthcare Malaysia has been at the forefront of evidence-based healthcare through its value-driven outcomes (VDO) initiative.

VDO tracks the patient journey to measure, identify gaps and improve clinical process efficiency, leading to better outcomes. Clinical practices are benchmarked against global standards, enabling data-driven decision-making.

Currently, IHH Healthcare Malaysia’s VDO initiatives cover around 15% of its procedures, such as colonoscopy, coronary angioplasty, total knee replacement (TKR), anterior cruciate ligament (ACL) surgery and hysterectomy. The goal is to expand this coverage to 50% in the near future.

“To ensure optimal outcomes from our VDO initiatives, we establish performance metrics for each procedure, including adherence to clinical guidelines, to improve quality of patient recovery and patient recovery time,” said Jean-François Naa.

The meticulous implementation of evidence-based practices and advanced data analytics has led to significant achievements, even surpassing international standards.

Across IHH Healthcare Malaysia, colonoscopy procedures have achieved an overall polyp detection rate of 50%, with an adenoma detection rate of 27%. This exceeds international benchmarks, which stand at 40% for overall polyp detection and 25% for adenoma detection.

Furthermore, Patient Reported Outcomes Measures (PROM) surveys such as Knee Injury and Osteoarthritis Outcome Score-12 (KOOS 12) conducted before and after TKR surgeries show significant improvements in areas that matter most to patients, such as pain relief, better physical function and enhanced quality of life. Patient score after surgery at three months improved by 41 points, and at six months, by 52 points. This is beyond the international standards of Minimal Clinical Importance Difference (MCID) of 11.1 points.

“With the positive results of our VDO initiatives and the maturity of our data, we are now ready to explore the feasibility of outcome-based payment models. This shift not only aligns with the Health Minister’s directive but also reinforces our commitment to delivering high-quality, patient-centred care,” said Jean-François Naa.

IHH Healthcare Malaysia’s VDO initiative spans its network in Malaysia including Gleneagles Hospitals, Pantai Hospitals and Prince Court Medical Centre, along with ancillary services encompassing Premier Integrated Labs and Pantai Integrated Rehab. The newly acquired Timberland Medical Centre will join the initiative next year.