China's Ministry of Health said on Monday that public hospitals will be banned from profiting from medicines.

This will be a focus in the country's medical system reform in next three years. Consultation fees will be allowed to increase to supplement hospitals' incomes and to encourage doctors' performances.

Mao Qun'an Spokesperson of Ministry of Health said "Profiting from medicine must stop during this reform of public hospitals. This is in response to growing public criticism of soaring medical fees. Medical fees take up less than 20 percent in some foreign hospitals, of patients' overall medical expenses. But in China, they take up more than 50 percent. We are also designing new policies to keep hospitals running. Raising diagnose charges are considered. Doctors will be responsible for their prescriptions. Quality services from doctors will be encouraged if we raise their consultation fees."

(CCTV January 13, 2009)