China Plans Major Health Reform by 2011

A health reform announced in China promises to bring 90% of its 1.3 billion inhabitants under a primary medical insurance scheme that provides a better public health system, basic medicines, networks of improved local clinics, and better services in public hospitals.

The Chinese government has promised to spend 850 billion yuan (about US$123 billion dollars) to overhaul the country's medical system. According to the reform plan, Chinese authorities would take measures within three years to provide basic medical security to all citizens in urban and rural areas, improve the quality of medical services, and make medical services more accessible and affordable for ordinary people.

The reform plan includes five measures, to be implemented by 2011: Increase the amount of rural and urban population covered by the basic medical insurance system or the new rural cooperative medical system to at least 90% by 2011.
Build a basic medicine system that includes a catalogue of necessary drugs produced and distributed under government control and supervision beginning from 2009. All medicine included would be covered by medical insurance, and a special administration for the system would be established.
Improve services of grassroots medical institutions, especially hospitals at county levels, township clinics, or those in remote villages, and community health centers in less developed cities.
Gradually provide equal public health services in both rural and urban areas in the country.
Launch a pilot program starting in 2009 to reform public hospitals in terms of administration, operation, and supervision.

"Reform of public hospitals lies at the heart of the new plan, which in the past, due to lack of government investment, have operated on profits from medical services and drug prescriptions,” said Professor Li Ling, Ph.D., of the National School of Development at Peking University (China), who was invited to draft the new plan in 2006. "The announcement of multi-billion pound investment in health reform is well timed in view of the current financial crisis and will help to stimulate demand in China's domestic economy.”

Growing public criticism of soaring medical fees, a lack of access to affordable medical services, poor doctor-patient relationship, and low medical insurance coverage compelled the government to launch the new round of reforms, according to the Chinese state-run news agency Xinhua.

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