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Complaints lead to test of hospital reform plan

CHINA will launch a pilot program to reform its hospitals in response to growing public criticism over soaring medical fees, lack of access to health-care services and poor doctor-patient relations.

"As China aims to provide universal medical service to 1.3 billion people, state-run hospitals must be overhauled," Health Minister Chen Zhu said yesterday at a national meeting on health issues.

Under the reform plan, the government will be responsible for giving subsidies to build public hospital infrastructure, he said.

Money will also be spent on buying medical equipment, academic research, doctor training and health care costs for retirees.

The government will also give special subsidies to hospitals that provide public health services such as disease prevention, inoculation and health education.

"The plan will tilt in favor of hospitals specializing in epidemic diseases, vocational diseases, psychiatry, traditional Chinese medicine, maternity and pediatrics," Chen said.

At the heart of the reform will be changes in how hospitals generate their income.

"We aim to reduce hospitals' involvement with drug sales in order to cut drug prices, medical supply prices and physical check-up fees," Chen said.

He noted that any resulting revenue shortfalls could be covered by government subsidies and a reasonable rise in patient fees. Some fees might be covered by the country's basic medical insurance, according to the official.

China began reforming its medical care in 1992 as it tried to abolish a system under which the government covered more than 90 percent of health-care expenses.

Due to a lack of government funding, public hospitals have for years operated mainly by using profits from medical services and prescription drugs. This profit-driven method of management has created "heavy burdens on patients and led to a waste of medical resources," Chen said earlier.

According to the health minister, the government will set up hospital monitoring institutions to ensure transparency in management and quality of medical service.

To deal with the "imbalanced" allocation of medical resources, which are concentrated in major urban hospitals, the government is considering relocating or integrating some state-run hospitals.

The government also wants to build more county-level hospitals, Chen said.

The central budget supports the construction of about 2,000 county-level hospitals in the next three years. The goal is to ensure that each county has at least one hospital of national standard.

Chen also said the government will select several cities to try out the reforms over the next three years. Those cities were not identified.

"We expect the pilot program to help us identify major measures for public hospital reform and lay the basis for the nationwide reform," he said.



 

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