ISSN: 2226-3624
Open access
Importance of the Topic: Growing market concentration, rising healthcare prices, and widening gaps in access to care have all had a substantial impact on Malaysia's private hospital sector. It is essential to comprehend the market structure in this industry since it has a direct bearing on patient accessibility, service quality, and price policies. This study focuses on Malaysia's private healthcare system, providing a detailed analysis of market concentration trends and their implications. By highlighting the interplay between market dynamics and healthcare equity, this research addresses an important gap in understanding private hospital economics in emerging economies like Malaysia. Methodology: Data from the private hospital sector in Malaysia from 2012 to 2023 was used in a quantitative analysis. The Herfindahl-Hirschman Index (HHI), concentration ratios (CR4 and CR8), the Entropy Index (EI), and the Hannah and Kay indices were used to assess market concentration. Competition, and accessibility were evaluated in relation to market structure and competitiveness trends. The study was supplemented by secondary data, retrieved from Companies Commission Malaysia (CCM). Major Findings: According to the study, the private hospital market in Malaysia is consistently highly concentrated, with CR4 and CR8 ratios routinely exceeding 65% and 75%, respectively, and HHI values ranging from 1796 to 2493. 2012 saw a peak in market concentration (HHI = 2493.21), a sign of less competition. Even though there have been slight decreases since 2016, a small number of major hospital networks still control the majority of the market, which exacerbates access and pricing inequities. Patients with middle- and low-income incomes are disproportionately affected by the limited diversification and increasing dominance of major companies, as further highlighted by the Hannah and Kay indices and the Entropy Index. Further Research Proposals: Future studies ought to examine how Malaysia's healthcare laws and public-private partnerships affect pricing and market concentration. Furthermore, research on the function of telemedicine, digital health technology, and creative finance schemes may shed light on how to increase affordability and accessibility. Understanding would be further enhanced by longitudinal studies concentrating on patient outcomes and healthcare quality in Malaysia's private hospitals. Increasing comparative research with other ASEAN countries would also provide insightful viewpoints on regional market dynamics and policy initiatives.
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