Exploratory Study on the Compensation Practices in Private Hospitals for Clinical Specialists in Malaysia

INTRODUCTION: Fee-for-service (FFS) has been the main payment method for clinical specialists around the world. However, until most recently, several payment methods for doctors, particularly clinical specialists, such as salary, pay for performance and blended remuneration of the above models have been researched. This mechanism is being used to increase the level of quality and value of healthcare services in the health sector. Despite increasing interest in these alternative payment methods, there is limited research about the payment method offered to clinical specialists in Malaysia. MATERIALS AND METHODS: Using qualitative interview with 15 private clinical specialists and 4 hospital administrators working in private hospitals in Malaysia, we explored the existing payment methods offered to private clinical specialists by private hospitals. RESULTS: Our study found that four payment methods were used which were FFS, salary-based, salary-based plus incentives and pool system. Majority of the clinical specialists interviewed were under the FFS payment method. New emerging payment methods which include salary-based and salary-based plus incentives were implemented in recent years, while the pool system was confined to certain specialities. CONCLUSION: The private hospitals in Malaysia provides different payment methods to the private clinical specialists which includes FFS, salary-based, salary-based plus incentives and pool system. These findings can help policymakers to explore the potential of various payment methods in the near future.