HONG KONG -- A working group will be set up to formulate health insurance proposals and frameworks for the city's Health Protection Scheme, Secretary for Food and Health of Hong Kong York Chow said Monday.

The Hong Kong government released the healthcare-reform, second- stage public-consultation report on Monday, and announced an action plan for the coming two years, taking into account views expressed.

In a briefing to the city's Legislative Council's Panel on Health Services, Chow told lawmakers that the working group on the scheme aims to regulate private health insurance and private healthcare services under the scheme to strengthen protection for the public through enhanced market transparency and greater competition.

He said 564 submissions were received during the three-month consultation, which ended on January 7.

"Members of the public supported regulating private health insurance and healthcare services through introducing the voluntary scheme to enhance market transparency and promote healthy competition, and strengthen protection to the public," Chow said.

He described a three-pronged action plan to take forward healthcare reform and roll out the scheme step by step.

Apart from establishing the working group, a high-level steering committee will be set up to conduct a strategic review of healthcare manpower planning and professional development.

Besides, the government will allocate land for private-hospital development, purchase healthcare services from the private sector to improve and strengthen public healthcare services, and develop infrastructure to support private health insurance and healthcare services.

Chow reiterated that the scheme was intended to complement the public system, which will remain the cornerstone of the healthcare system. While taking forward healthcare reform, the government's commitment to the public system would only increase, and not decrease.

Hong Kong's healthcare recurrent expenditure, totaling HK$39.9 billion(about $5.13 billion) in 2011-12, now accounted for 16.5 percent of the government's recurrent expenditure, and was set to further increase as the government has pledged to increase the ratio to 17 percent by 2012.