Experts say China plans more health care reform

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The adjustment of drug prices is seen as a step to test the waters of the health care reform. Experts say China will continue to deepen the reform which aims to provide equitable and universal access to basic health care.

Wu Jiuhong is the pharmacy director at an army hospital. He says the price cuts cover nearly all the medicines they use. This will bring down costs for patients. But more important, the move marks the beginning of reforms.

Wu Jiuhong, Pharmacy Director, PLA No.306 Hospital, said, "I think it's very good news that essential medicines will have a 12 percent cut in price. I think there will be other related policies coming out, involving price, category, financing, distribution, and many other issues of the health care system."

Since 1997, China has lowered drug price more than 20 times, with average margin of 15 to 20 percent.

Cumulative cuts involve tens of billion yuan. Bringing down the cost of medicines is still one of the top concerns of the health care reform.

But China's hospitals have long relied on medicine sales to cover operating costs. Balancing this against the price cuts also requires reform.