IHH Healthcare Malaysia leads the shift towards value-based healthcare

IHH Healthcare Malaysia, a pioneer in value-based outcomes practice, is set to move to value-based healthcare, in line with the Health Minister’s call to move from a “fee-for-service” to a “pay-for-outcomes” model.

The aim is to improve patient outcomes and reduce costs associated with unnecessary medical procedures. Jean-François Naa, CEO of IHH Healthcare Malaysia, said: “In an era where healthcare costs are rising due to an ageing population, the prevalence of chronic diseases and the use of advanced technologies that deliver better outcomes but are linked to higher costs, we are committed to providing value-driven care that is patient-centred, cost-effective and improves patient health.”

Since 2019, IHH Healthcare Malaysia has been at the forefront of evidence-based healthcare through its Value Driven Outcomes (VDO) initiative.

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

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 aim is to expand this coverage to 50% in the near future.

“To ensure optimal results from our VDO initiatives, we set performance parameters for each procedure, including compliance with clinical guidelines, to improve patient quality and recovery time,” says Jean-François Naa.

Meticulous application of evidence-based practices and advanced data analytics has enabled significant achievements, even surpassing international standards.

VDO tracks the patient journey to measure, identify gaps and improve clinical process efficiency, leading to better outcomes

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

Additionally, patient-reported outcomes (PROM) surveys, such as the Knee Injury and Osteoarthritis Outcome Score-12 (KOOS 12), conducted before and after THR procedures show significant improvements in the areas that matter most to patients, such as pain relief, improved physical function, and higher quality of life. Patients’ scores improved by 41 points at three months postoperatively, and by 52 points at six months. This exceeds international standards for Minimal Clinically Important 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 change not only complies with the Ministry of Health 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 Malaysian network, which includes Gleneagles Hospital, Pantai Hospital and Prince Court Medical Centre, along with ancillary services such as Premier Integrated Labs and Pantai Integrated Rehab. The recently acquired Timberland Medical Centre will join the initiative next year.