A senator has urged the government to act against allied health service providers accused of profiteering following complaints that some physiotherapy centres had hiked their fees without informing patients.
Dr RA Lingeshwaran said he had received multiple reports that the service tax waiver on allied services provided by private hospitals and clinics had not led to lower costs for patients.
“While these centres have universally applied the service tax waiver, many have simultaneously increased their consultation charges without informing their patients,” he said in a statement.
He cited the example of a private centre in the northern region of West Malaysia which charged an MP’s eight-year-old niece RM1,400 for a package of 10 physiotherapy sessions.
He said with the 6% service tax, the total cost would be RM1,484. But with the waiver, the price should have dropped back to RM1,400.
“However, the centre increased its charges to RM1,450, citing ‘an increase in operational charges’. They conveniently tried to camouflage this increase by claiming the overall cost had been reduced due to the government’s tax waiver,” he said.
“Such actions are a blatant exploitation of regulatory loopholes.
“Allied health services, including physiotherapy, occupational therapy and chiropractic services, do not have a regulatory fee structure, allowing them to charge whatever they want.”
Calling for immediate intervention, Lingeshwaran said new laws and Acts must be enacted to protect the rakyat from such profiteering.
He also said many allied services are understaffed and neglected within the public sector, forcing Malaysians to seek alternatives from the private sector.
“When these private centres are left unregulated, patients become vulnerable and can be manipulated out of desperation for treatment for themselves and their loved ones,” he said.
