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Q1. Good evening Shen Le. Can you tell us more about this new policy in the medical sector? What else do we know about it?

SL: Well, Zou Yue. The new rules have many facets. It's actually called the \Health Care Institutions.\

So to boil it down, it's essentially a bar lifter, allowing access of certain parts of the medical sector to private and foreign investors. The approval process of joint-venture medical units will be streamlined, and some state hospitals will be converted to non-governmental institutions.

All of these measures are aimed at giving the current state-dominated medical sector a reshuffle, to allow more diversified services targeting more specific markets.

Q2. You went to an American hospital this afternoon. Compared to a state hospital, what are the differences?

SL: Zou Yue, before the new policy came out last Friday, working at a foreign hospital was quite different from working at a state-run facility. Doctors and nurses couldn't keep their professional titles if they decided to work for a private or foreign hospital.

Additionally, it was almost impossible to apply for a state-funded medical research project if you were not working for a state-owned hospital. Both factors have given state medical facilities a huge advantage in terms of human resources.

But according to the new policy, private and foreign medical institutions will be given equal treatment, which means people will flow freely between the two, making the private sector more attractive. And that will hopefully help bring up the overall quality of medical services in this country.

According to the new initiative, private hospitals will be entitled to the same preferential policies public hospitals enjoy now. That includes the way they are taxed. Partial expenditures will also be covered by patients' medical insurance. None are currently covered

The central government has announced new policies to encourage private funds, including overseas capital, to be channeled into the medical sector. The aim is to meet the country's increasingly diverse health care demands. To find out how foreign institutes are reacting to the changes, CCTV reporter Shen Le visited an American hospital in Beijing.

At Beijing United Family Hospital, Sylvia Pan shows off her latest blog entry. It chronicles her immediate reaction upon hearing the latest medical news.

She said, \`Spring Has Come.` It has come not only for United Family, but also for all foreign hospitals.\

The new rules also provides general guidelines for giving equal treatment to overseas medical facilities.

She said, \many patients as a major government-run hospital. It's not fair to ask overseas hospitals like us, whose target market is quite different from that of state hospitals, to follow the same regulations.\

Solely foreign-invested medical units will first be piloted, and then gradually expanded. On the subject of facing potential competition from newcomers, state hospitals say they have nothing to fear.

Liu Yucun, President of Peking University First Hospital, said, \competition. It will encourage better medical services for the people.\

According to the new policy, doctors and nurses who previously worked for state hospitals can keep their professional ranks and titles when they move to private or foreign facilities. In addition, doctors working at such venues will also be eligible to apply for research projects funded by the government.

Shen Le said, \have more choices when it comes to the issue of healthcare. Shen Le, CCTV, Beijing.\

China is trying to curb rising medicine prices. It's doing so by improving funding at basic hospitals and clinics.

A regular meeting of the State Council, presided over by Premier Wen Jiabao, says the move aims to ensure smooth implementation of a basic medicine system.

Government-run community hospitals and rural clinics are expected to receive official monetary support for operational costs. Other reforms, including the improvement of human resources systems, and medical insurance will also be targeted.

China is trying to curb rising medicine prices. It's doing so by improving funding at basic hospitals and clinics.

The State Council also urged more support for rural doctors and non-governmental medical institutions. They called on government departments at all levels to work out detailed measures as soon as possible.

BEIJING, Dec. 3 (Xinhua) -- China's central government on Friday declared new policies to encourage private funds, including overseas capital, to be channeled to the medical sector to meet the country's increasingly diversified demands on health care.

The new policies, dubbed \government's official website www.gov.cn.

It clearly stipulated that social capital should enjoy preferential treatment when China is adjusting or increasing medical resources and social funds will be encouraged to participate in governmental restructuring of hospitals.

Overseas investments are now welcomed to sponsor hospitals, while the procedures will be further simplified, according to the guideline. The general office of the State Council, or cabinet, required local governments to amend their documents accordingly and get rid of any policies that impede the development of non-governmental medical institutions.

Also, the new policies encourage social funds to take part in governmental hospital reforms and convert some government-backed hospitals into non-governmental institutions to reduce the ratio of public hospitals, said an official with the medical and health care system reform office under the State Council.

China will deepen the opening-up of medical institutions and turn the overseas-invested medical sector from the \investment)\

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