China Unveils Ambitious Plan to Reform Healthcare System

China Unveils Ambitious Plan to Reform Healthcare System

Liu Jiehua
1 min read

China's State Council Unveils Major Overhaul of Medical System

China's cabinet has announced a comprehensive plan to reform the country's medical system, targeting public hospitals, insurance payments, and healthcare infrastructure. The reform outlines 22 key tasks, including expanding local medical system capacity, promoting the development of public hospitals, and coordinating efforts to address issues promptly. Additionally, measures will be taken to revamp remuneration at public hospitals, enhance basic medical insurance coverage, and integrate digital technologies into the healthcare system. The plan also emphasizes the importance of combating corruption in the healthcare sector.

Key Takeaways

  • China's cabinet announced a plan to reform the nation's medical system, focusing on public hospitals and insurance payments.
  • Local governments urged to expand medical system capacity, promote public hospitals, and coordinate reforms.
  • Centralized purchasing for select drugs and medical consumables to be implemented in all provinces.
  • Initiatives to push for more commercial health insurance coverage and faster approvals for innovative drugs.


The overhaul of China's medical system is poised to have wide-reaching implications for patients, healthcare providers, and insurers. The reforms aim to combat corruption, improve remuneration at public hospitals, and integrate digital technologies, ultimately reducing healthcare costs and enhancing medical services. Additionally, the revamp is expected to create a more competitive landscape for private insurers and pharmaceutical companies, fostering innovation and better patient care in the long term.

Did You Know?

  • Public hospitals: In China, public hospitals account for about 90% of inpatient care and have faced criticism for long waiting times, high out-of-pocket costs, and over-reliance on drug sales for revenue. The reform plan seeks to address these issues by enhancing the quality and accessibility of care in public hospitals.
  • Centralized purchasing for drugs and medical consumables: This approach aims to reduce healthcare costs for both patients and the medical system, improve the affordability and accessibility of medical services, and promote fairness in the distribution of medical resources.
  • Commercial health insurance coverage: The push for more commercial health insurance coverage is expected to reduce the financial burden on patients and improve overall healthcare accessibility, complementing the basic medical insurance system.

In conclusion, the proposed reforms underscore China's commitment to improving its healthcare infrastructure, addressing longstanding challenges, and fostering innovation in the medical sector.

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