Li Bin: All 50 Key Healthcare Reform Tasks for 2016 Completed—What Are the New Goals for 2017?

According to VCBeat, a national teleconference on healthcare reform was held in Beijing on March 28. At the meeting, Liu Yandong, Vice Premier of the State Council and Head of the State Council Leading Group for Healthcare Reform, delivered an important speech. Li Bin, Director of the National Health and Family Planning Commission and Deputy Head of the State Council Leading Group for Healthcare Reform, attended the meeting and briefed attendees on the progress of healthcare reform in 2016 and the key work arrangements for 2017.

What achievements were made in the 2016 healthcare reform process? What new healthcare reform measures were introduced in 2017? VCBeat has provided a comprehensive review, hoping to offer entrepreneurs some fresh perspectives.

Based on the healthcare reform policies released, in 2016, the State Council put forward a total of 50 key reform tasks across 10 areas and issued more than 20 important policy documents related to healthcare reform, including the Outline of the “Healthy China 2030” Plan, the 13th Five-Year Plan for Health and Wellness, and the 13th Five-Year Plan for Healthcare Reform.

Comprehensive reforms of public hospitals have been continuously deepened, with the achievements of full-coverage reforms in county-level public hospitals further consolidated and pilot reforms in urban public hospitals expanded. The construction of a tiered diagnosis and treatment system has been accelerated, with pilots launched in 80% of cities and 50% of counties, thereby exceeding the targets set forth in the 2016 Government Work Report.

Subsequently, the State Council issued the "Opinions on Integrating the Basic Medical Insurance Systems for Urban and Rural Residents," accelerating the integration of basic medical insurance systems for urban and rural residents. The guarantee mechanism for critical and severe diseases has been gradually improved, with serious illness insurance playing a significant role in health-related poverty alleviation. Direct settlement for intra-provincial medical services under basic medical insurance has been achieved. The General Office of the State Council issued the "Several Opinions on Further Reforming and Improving Policies for Drug Production, Circulation, and Use," aiming to strengthen the drug supply guarantee mechanism by addressing key links such as drug production, distribution, and utilization.

“Over the past year, we have focused on implementing the decisions and deployments of the CPC Central Committee and the State Council across three key areas,” said Li Bin. The main approaches are as follows:

First, we strengthened learning and training. We organized various training programs for leading officials at the provincial-ministerial and prefecture-city levels, training approximately 2,000 participants to thoroughly study and comprehend the spirit of General Secretary Xi Jinping’s speech at the National Conference on Health and Wellness. Vice Premier Liu Yandong personally delivered an instructional report to provincial-ministerial level leading officials, requiring them to firmly establish the “Four Consciousnesses” and align their thinking and actions with the decision-making and strategic deployments of the CPC Central Committee with Comrade Xi Jinping at its core regarding healthcare reform and health and wellness initiatives. This further enhanced the confidence and proactive commitment of cadres and staff in advancing healthcare reform.

Second, intensify implementation efforts. Leaders in charge at all levels of government have gone to the frontline to provide direct, on-site command. At the national level, a problem-oriented approach has been upheld, and documents such as those on promoting family doctor contract services and strengthening the reform and development of children’s medical and health services have been issued to address issues including weak foundations in the tiered diagnosis and treatment system and shortages of pediatric healthcare resources.

Leverage the roles of pilot provinces for comprehensive healthcare system reform and demonstration counties for public hospital reform, and summarize and promote experiences such as Sanming City’s “three-medical” coordinated reform, Shanghai’s “1+1+1” family doctor contract service, and Tianchang City’s construction of medical consortia. Localities have also established a number of typical models in practice, ensuring that there are clear targets to pursue and role models to emulate. By establishing work ledgers, strengthening supervision and guidance, transmitting pressure through all levels, and consolidating responsibilities at each tier, not only were key tasks overfulfilled, but new breakthroughs were also achieved in challenging areas such as compensation system reform and the implementation of the “two-invoice system.”

Third, emphasis is placed on coordinated planning. Driven by reform, various tasks are advanced in a coordinated manner. The development of the comprehensive regulatory system for the healthcare industry is aligned with the “decentralization, control, and service” reforms and mutually reinforces the deepening of healthcare reform. The level of equalization in basic public health services has further improved, and the development of the healthcare workforce has been significantly strengthened. Multiple measures have been implemented to promote the healthy development of privately-run healthcare institutions, with outpatient visits at non-public medical institutions now accounting for 22% of the national total. Efforts are also being made to advance the integration of medical care and elderly care, medical tourism, and the reform and development of traditional Chinese medicine.

Overall, over the past year or more, reform policies have been further improved, the pace of reform has accelerated, and the results of reform have become increasingly evident, marking a strong start to healthcare system reforms during the 13th Five-Year Plan period.

Although the healthcare reform achieved remarkable results in 2016, it remains a tough and protracted battle. What are the plans for 2017?

“2017 is a crucial year for implementing the spirit of the National Health and Wellness Conference and the ‘13th Five-Year Plan’ for healthcare reform.” The key tasks for deepening healthcare reform in 2017 have been reviewed and approved by the State Council’s Leading Group for Healthcare Reform and will soon be issued. The main areas of focus include:

First, strengthen top-level design. Issue key policy documents on establishing a modern hospital management system, improving the comprehensive regulatory framework for the healthcare industry, and enhancing Party building in public hospitals.

Second, ensure the effective implementation of tasks. Expand the scope of pilot programs for tiered diagnosis and treatment, promote family doctor contract services, and advance the development of medical consortia. Comprehensively roll out the comprehensive reform of urban public hospitals, fully eliminate drug markups (with the exception of traditional Chinese medicine decoction pieces), and promote the establishment of modern hospital management systems. Advance the establishment of a diversified and composite payment system dominated by diagnosis-related group (DRG) payments. Ensure that direct settlement of inpatient expenses for cross-regional medical care in accordance with referral regulations is basically achieved within the year. Implement the "Several Opinions on Further Reforming and Improving Policies for Drug Production, Circulation, and Use," and guide localities in refining policy measures. Strengthen industry supervision, standardize medical practices, and implement systems such as prescription review. Standardize and guide the healthy development of privately run medical institutions.

Third, focus on improving services. Centered on the development of Healthy China, implement measures to enhance public health and well-being and increase people’s sense of gain. Further improve medical services.

Vigorously advance health-related poverty alleviation by providing centralized treatment for patients with catastrophic illnesses, ensuring a safety net for those with severe diseases, and implementing contracted service management for chronic conditions. Strengthen health education and promotion, and enhance the prevention and control of major diseases.