Anusaar by Lenorasoft
New Member
Malaysia is rolling out e-Invoicing in the healthcare industry, and hospitals, clinics, and medical professionals need to know how it affects their billing processes. This guide breaks down the key changes in a simple and easy-to-understand way.
Right now, hospitals issue invoices based on who is paying:
Patients who pay for themselves
Insurance companies, employers, or guardians paying on behalf of a patient
Companies covering medical expenses for employees
These billing arrangements will remain the same under e-Invoicing in the healthcare industry. Exception: If the patient is a minor (under 18), the invoice should include the parent/guardian's details.
Yes! If a patient does not need an e-Invoice, the hospital can issue a single consolidated e-Invoice for all similar transactions.
Currently, hospitals send a proforma bill to insurance companies before getting a Final Guarantee Letter ( FGL ) and finalizing the bill.
With e-Invoicing:
Hospitals can continue using proforma invoices for insurance claims. If an e-Invoice is requested, it must be issued after the final bill is ready (eg, after the patient is discharged).
If no e-Invoice is requested, hospitals can issue a normal bill and later submit a consolidated e-Invoice within 7 days after month-end.
Hospitals work with independent consultants in two ways:
(1) Co-Provision of Medical Services
Both the hospital and consultant will issue separate e-Invoices to the patient.
(2) Outsourcing Arrangement
The hospital issues an e-Invoice to the patient, covering both hospital and consultant fees. The consultant (or their company) issues an e-Invoice to the hospital for their services.
It depends on how they are hired:
If they are independent (contract for service), they must issue an e-Invoice to the hospital.
If they work through an agency, the agency must issue the e-Invoice.
If they are hospital employees, no e-Invoice is needed.
Scenario 1:
The first hospital discharges the patient before transfer. Both hospitals issue separate e-Invoices for their treatments.
Scenario 2:
The first hospital waits until the patient returns before issuing a bill. First hospital issues an e-Invoice for all services, including those from the second hospital. Second hospital issues an e-Invoice to the first hospital for its services.
Both methods are acceptable under e-Invoicing rules.
Yes! Hospitals must issue e-Invoices for:
Hospitals must issue e-Invoices based on the detailed bill (itemized breakdown of charges).
Not necessarily. Even if a hospital's revenue exceeds RM100 million, individual consultants only need to comply when their own revenue meets the threshold.
If the hospital already issues invoices for staff medical benefits:
It must now issue an e-Invoice (with a nil amount if services are free).
If no invoices are issued today:
No need to start issuing e-Invoices for staff medical benefits.
The e-Invoicing in healthcare is designed to improve compliance, transparency, and efficiency in Malaysia's healthcare industry. Most hospitals can keep their current billing process, but they must ensure e-Invoices are issued where required.
1. Will hospitals need to change how they issue invoices?
Right now, hospitals issue invoices based on who is paying:
Patients who pay for themselves
Insurance companies, employers, or guardians paying on behalf of a patient
Companies covering medical expenses for employees
These billing arrangements will remain the same under e-Invoicing in the healthcare industry. Exception: If the patient is a minor (under 18), the invoice should include the parent/guardian's details.
2. Can hospitals issue one e-Invoice for all self-paying patients?
Yes! If a patient does not need an e-Invoice, the hospital can issue a single consolidated e-Invoice for all similar transactions.
3. How does e-Invoicing work for insurance claims?
Currently, hospitals send a proforma bill to insurance companies before getting a Final Guarantee Letter ( FGL ) and finalizing the bill.
With e-Invoicing:
Hospitals can continue using proforma invoices for insurance claims. If an e-Invoice is requested, it must be issued after the final bill is ready (eg, after the patient is discharged).
If no e-Invoice is requested, hospitals can issue a normal bill and later submit a consolidated e-Invoice within 7 days after month-end.
4. How should hospitals issue e-Invoices for independent consultants?
Hospitals work with independent consultants in two ways:
(1) Co-Provision of Medical Services
Both the hospital and consultant will issue separate e-Invoices to the patient.
(2) Outsourcing Arrangement
The hospital issues an e-Invoice to the patient, covering both hospital and consultant fees. The consultant (or their company) issues an e-Invoice to the hospital for their services.
5. Do locum doctors and nurses need to issue e-Invoices?
It depends on how they are hired:
If they are independent (contract for service), they must issue an e-Invoice to the hospital.
If they work through an agency, the agency must issue the e-Invoice.
If they are hospital employees, no e-Invoice is needed.
6. What happens when a patient is transferred between hospitals?
Scenario 1:
The first hospital discharges the patient before transfer. Both hospitals issue separate e-Invoices for their treatments.
Scenario 2:
The first hospital waits until the patient returns before issuing a bill. First hospital issues an e-Invoice for all services, including those from the second hospital. Second hospital issues an e-Invoice to the first hospital for its services.
Both methods are acceptable under e-Invoicing rules.
7. Do hospitals need to issue e-Invoices for space rental & service fees?
Yes! Hospitals must issue e-Invoices for:
- Rental fees charged to independent consultants
- Rental payments from cafes, convenience stores, or other tenants
8. Should hospitals submit summary or detailed bills for e-Invoicing?
Hospitals must issue e-Invoices based on the detailed bill (itemized breakdown of charges).
9. Do medical consultants need to implement e-Invoicing if the hospital is required to?
Not necessarily. Even if a hospital's revenue exceeds RM100 million, individual consultants only need to comply when their own revenue meets the threshold.
10. What about deposits collected by hospitals?
- Refundable deposit: No e-Invoice needed.
- Non-refundable deposit: E-Invoice required.
- For self-paying patients who do not need an e-Invoice, hospitals can issue a consolidated e-Invoice.
11. How should hospitals handle e-Invoices for staff medical benefits?
If the hospital already issues invoices for staff medical benefits:
It must now issue an e-Invoice (with a nil amount if services are free).
If no invoices are issued today:
No need to start issuing e-Invoices for staff medical benefits.
Conclusion
The e-Invoicing in healthcare is designed to improve compliance, transparency, and efficiency in Malaysia's healthcare industry. Most hospitals can keep their current billing process, but they must ensure e-Invoices are issued where required.
