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The new plan sets out the new medical reform policy, targets, roles and a schedule for implementation. The reforms will set up systems for basic medicare, medication, medical insurance and hospital management.

Former Vice Health Minister Zhu Qingsheng said the core part of the medical reforms will focus on financing and management in hospitals.

The Chinese government currently operates 95 percent of the 16,000 hospitals in the country. But the government is incapable of spending enough money to conduct reforms in all the hospitals.

Overhauling the management system in hospitals will also pose a thorny problem. A single hospital, like Peking University People's Hospital, is overseen by the Education Ministry, Health Ministry and local government. The Education Ministry manages the staff at the hospital, the Health Ministry manages the financial affairs and the local government monitors the quality of the services on offer.