Public hospitals in Shanghai involved in medical disputes will not be allowed to pay direct compensations to patients asking for more than 30,000 yuan ($4,721), according to a notice jointly issued by the city's justice bureau, health bureau and public security bureau.

Medical disputes involving a compensation demand over that sum will be required to be settled by medical mediation committees.

The move is part of the city's efforts to promote third-party mediation in the increasingly frequent medical disputes cases.

Officials said the third-party mediation policy will enable medical disputes to be solved more effectively, and avoid events that disturb the normal operation of hospitals.

The third-party medical mediation committees were introduced by the city on Aug 23, 2011. So far, the committee has accepted 2,272 disputes and solved 1,623 cases.

wanghongyi@chinadaily.com.cn