A 'price ceiling' policy will be implemented from April 1 to reduce patient medical costs in Class II or higher public hospitals in central China's Henan Province, the provincial health department announced on February 13.

The price ceiling will be set for the cost of treatment for a single illness from the time of hospital admission through diagnosis and treatment. Any costs exceeding the price ceiling will require to be met by the medical authorities. Details of the scheme were outlined in a recent communication by the department.

Hospitals are being urged to undertake strict cost calculating exercises and agree a fair price ceiling for an illness on the basis of 'in patient' costs for similar treatments over recent years. The category of an illness and the charge rates for treatment should be reported to public health departments before the end of February. A panel of experts will be set up to examine the proposals.

Under the new policy medical facilities would strictly implement a quality control standard for every single illness, which was laid down by the Ministry of Health. Efforts to improve the accuracy of diagnosis and an increase in the number of patients released from hospital cured of illnesses are also being sought. Hospitals will also be required to strictly control medicines and other medical materials used in operations. Such savings could significantly reduce the medical cost to patients. 

The provincial health department started a trial of the price ceiling in 2004 in the cities of Zhengzhou and Xinyang.

(China.org.cn by Zhang Yunxing, February 20, 2006)