Under the new program, patients with minor ailments are to be directed to primary hospitals, which usually consist of small, outpatient clinics.

Patients with more serious illnesses will be sent to second-tier or secondary hospitals.

Only the most seriously ill will be sent to third-tier or tertiary hospitals.

Jiao Yahui with the National Health and Family Planning Commission says the three-tier system is critical in reducing wait-times.

"Without a tiered system in place, we will never be able to address overcrowding in tertiary hospitals."

The new guidelines are also calling for a more integrated health care network.

Large and small hospitals are going to have to share resources and expertise to save money.

Feng Guosheng, head of the Beijing Municipal Administration of Hospitals, says the new design will fully utilize the resources available at all of China's medical institutions.

"For instance, patients including those who have gone through surgery and those who are recovering from critical illnesses will be transferred to lower-tier or community hospitals. These hospitals are better at tending to recovering patients. Through this, we will be able to fully utilize the resources at all medical institutions."

At the same time, authorities have also laid out plans for infrastructure upgrades at medical facilities in China's smaller cities and rural areas.

Broader-based medical insurance plans are also being worked on.

Liu Guoen with the State Council's Health Care Advisory Committee says they believe the new system is going to be much more efficient.