ABSTRACT
The unprecedented growth of the private medical sector since the 1980s has had wide-ranging implications for the Malaysian health care system. In particular, it is well known that leaving health care to market forces does not necessarily lead to an effective and efficient health care system (Rosenthal and Newbrander 1996). Therefore, there has to be a robust regulatory framework to ensure equity and access, and also to ensure that private health services are of acceptable quality. The Malaysian Government, in the MidTerm Review of the Sixth Malaysia Plan 1991-1995, states:
While the government will still remain a provider of basic health services, the role of the Ministry of Health will gradually shift towards more policy making and regulatory aspects as well as setting standards to ensure quality, affordability and appropriateness of care. At the same time the Ministry of Health will ensure an equitable distribution in the provision of health services and health manpower between the public and private sectors.
