Methods to Reduce Outstanding Medical Fees at Public Hospital in Malaysia: An Action Research Project

Abstract

The aim of the study to solve problems related to revenue collection at Public Hospitals in Malaysia. Using the action research approach, two phases were adapted to review the state of metastasizing outstanding medical fees at one of the public hospitals located at west coast of Sabah and its contributing factors. The secondary data from monthly or annual financial reports, focus group discussions (N = 20), and review of government documented regulations and manuals were gathered in this study. It was revealed that the significant proportion of outstanding medical fees in the public hospital is attributed to non-citizens. The main problems faced include noncompliance with policies and procedures in the revenue collection process; lack of IT-based revenue cycle management; and poor engagement of hospital staff in revenue cycle management. Implementation of an IT-based billing system has improved communication between frontline and backend staff and hence improved revenue collection efficiency. Further collaboration with higher authorities in the implementation of a comprehensive online payment system and to increase insurance coverage for non-citizens via medical and social services are explored.