Page 322 - ANUAL REPORT MOH 2017

Figure 4
Total Health Expenditure By Sources Of Financing (Public Vs. Private), 1997 to 2016

Source: MNHA Unit, Planning Division, MoH

The providers of health care services and products include hospitals, nursing and residential care facility
providers, ambulatory health care providers, retail sale and medical goods providers and public health
program providers. Over the span of 20 years from 1997 to 2016, highest expenditure for health was
by the hospitals as the provider of health care services followed by providers of ambulatory health care.

Functions of health services based on NHA includes core functions of health care (e.g. curative care,
rehabilitative care, long term nursing care, ancillary services, out-patient medical goods, public health
services, health administration and health insurance) and health related functions (e.g. education,
training of health personnel, research and development). When exploring 1997 to 2016 time series
TEH by functions/services/medical goods purchased, curative care remains the highest health services
expenditure ranging between 57.02 to 69.65 percent. This is followed by expenditure for Health program
administration and health insurance which ranged between 6 to 11 percent of TEH.

The TEH is disaggregated to show thirteen states and three Federal Territories, health expenditure.
Selangor and Kuala Lumpur are the two locations with highest health expenditure. In 2016, Selangor’s
health expenditure was RM8,710 million and in Kuala Lumpur the health expenditure was RM7,005.

OOP health expenditures are estimated through a complex method called the integrative method
whereby the gross level of direct spending from consumption, provision and financing perspective is
collated followed by deduction of third party financial reimbursements by various agencies to avoid
double counting. The 1997 to 2016 time series data shows that the household OOP health expenditure
remains the largest single source of funding in the private sector amounting to an average of 75 per cent
of this sector spending which is equivalent to about 29 to 38 per cent of total health expenditure. The
OOP health expenditure from 1997 to 2016 has increased from RM3,166 million to RM19,570 million.

MINISTRY OF HEALTH MALAYSIA ANNUAL REPORT 2017 321