Achievements of China's medical reform

On Jan. 21st, 2009, China's State Council, or Cabinet, passed a long awaited medical reform plan which promised to spend 850 billion yuan (123 billion U.S. dollars) by 2011 to provide universal medical service to the country's 1.3 billion population.

The new medical reform focuses on five areas.

First of all, 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 percent by 2011. Each person covered by the systems would receive an annual subsidy of 120 yuan from 2010.

Secondly, build a basic medicine system that includes a catalogue of necessary drugs produced and distributed under government control and supervision starting from this year. All medicine included would be covered by medical insurance, and a special administration for the system would be established.

Thirdly, 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.

Fourthly, gradually provide equal public health services in both rural and urban areas in the country.

Last but not least, launch a pilot program starting from this year to reform public hospitals in terms of their administration, operation and supervision, in order to improve the quality of their services.

3 years since the reforms were introduced in 2009, over 1.5 trillion yuan has been invested in the medical sector. A medi-care network has been introduced, covering more than 95 percent of China's population.

About 63 billion yuan has been invested by China's central government to help construct 33,000 county-level hospitals, and township and village clinics.

At the same time 4.15 billion yuan has been spent on establishing more than 2,000 community clinics in urban areas. Of the total 1.5 trillion yuan invested, the central government provided more than 450 billion yuan, with the rest coming from local governments and other sources.

China has also raised subsidies for both rural and urban medicare, from 80 yuan per person per year in 2008, to about 240 yuan per person per year in 2012.

On July 1st, 2012, Beijing began implementing its program on public hospital reform. The Beijing Friendship Hospital is the one that will eliminate the 15 percent drug mark-up, and introduce a medical care service fee. This reform aims to separate hospital’s income from medical treatment and prescription medicine. A survey conducted by Beijing Municipal hospital management bureau shows that the public generally gave positive feedback to the city’s medical reforms.

As well as the Beijing Friendship Hospital, four other Beijing hospitals are testing different reform programs, including the new management and medicare mechanism. Director of the Beijing Hospital management Bureau, Fang Laiying, says these reforms will promote better service to the public from state-owned medical facilities.

The achievements in China's healthcare reform over the past three years have been notable. It's the highest government investment in medical care in China's history.