Reducing hospital costs

The government's decision to start public hospital reform with pilot programs will put in place an essential piece, without which it is not possible to reform the country's overall healthcare system.

But unless the government comes up with fiscal input to adequately and timely compensate public hospitals to stop making undue profits from sale of medicines, it will be hard to progress toward a reasonable, effective and optimal healthcare system across the country.

On Wednesday, the State Council, China's Cabinet, approved of the guideline on public hospital reform, which for long has been expected to effect substantial changes in one of the most important aspects of China's healthcare reform.