All the cities of Henan province should fully carry out urban public hospital reform by the end of August and all the public hospitals should abolish the drug price markups system, according to a conference recently held by the Health and Family Planning Commission of Henan Province.

Henan Health and Family Planning Commission asked that public hospitals at all levels should define their functional orientation and improve the efficiency of resource utilization. Public hospitals should end markups on drug prices, which means to reduce drug prices and lower hospital operating costs as well as standardize medical service behavior.

Henan health authorities encourage public hospitals' rational use of drug and medical materials. The adjusted price of medical service should be included in health insurance coverage. Government compensation should be put in place in time to ensure that hospitals' burdens don't increase.

Henan province will set up evaluation and accountability mechanisms to ensure the public hospital reform can be effectively carried out.