State council releases guidelines to boost healthcare sector

China's state council released guidelines on Monday outlining measures to improve services in the medical and healthcare industries. The newest reforms include liberalizing the pricing of private hospitals, and providing financial assistance to healthcare related businesses.

The move is expected to improve efficiency in China's vast healthcare market, which is estimated to be worth some 8 trillion yuan or 1.3 trillion US dollars in 2013. Laura Luo has the story.

A new round of reform measures have just been released by China's State Council to tackle problems such as high medical fees, and poor insurance policies. Private hospitals now have more freedom to set their own prices, and private sectors are encouraged to enter the playing field. Analysts say this will provide more medical supply to suit the country's vast demand.

"There will be services for healthcare management and fitness programs. There will also be long term care, family care, and rehabilitation services. These reforms not only benefit people's health, but also help economic integration." Liu Guoen, Director of Health Economics Research Centre, Peking Univ., said.

The government is also offering financial aid and tax breaks to healthcare businesses.

"The new policy has set strong foundation for the growth of healthcare services. It will further increase market potential, create jobs, and improve industry structure." Ren Wei, Deputy Director OF Social Dept., NDRC said.

Private insurance industry is another area that will see a big boost of energy. Insurance companies will be linked with hospitals, medical check-up clinics, and healthcare centres. Meanwhile, the government will give tax credits for businesses and widen payment channels for medical insurance.