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China to Launch Key Urban Health Care Reform
A press conference in Beijing confirmed China's plan to reform the urban health care system.
Officials from the Economics Restructuring Office of the State Council say the reform is aimed at innovating the old medical and health care system.
Song Xiaotong, State Council Official (Economics Restructuring Office) said: "In the past, the only places for ailing people to turn to for treatment and medicine in China, were hospitals. Even then, only employees of state-owned enterprises could use the health care system. Now, with the new rule, people can purchase their medication at pharmacies with a prescription. "
Statistics show that the government has given the medical care sector 2.7 billion yuan to 77 billion yuan, between 1978 and 1997. At the same time, hospitals are also making large sums of money from selling pharmaceuticals.
After implementing the reform, the hospital and pharmaceutical sectors will become two separate entities. Each sector will need to manage their own finances and operations.
With the birth of the new policy, improved management control will help combat price inequities and mercenary activities in the present medical and health care system.
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