Recently, the National Health Commission ("NHC") and the State Administration of Traditional Chinese Medicine ("SATCM") have jointly released the Work Plan for the Pilot Program on Developing Urban Medical Consortium (the "Plan") and simultaneously distributed a circular to clarify relevant arrangements.
The circular clearly states that basic requirements that a candidate city needs to satisfy include the high importance attached by the party committee and government of the city, relatively good foundations in health work in the city, and favorable conditions for such pilot program. Recommendation procedures consist of the self-evaluation of the city, recommendation by the province, and final selection of entities to undertake this program. The Plan states that medical care and health care resources within a specific region should be integrated to set up a medical consortium that is led by Class III public hospitals or hospitals boasting the highest level of medical care within the local administrative region and formed by such members as several other hospitals, community-based health service agencies, nursing homes, and professional rehabilitation agencies, adding that public health institutions are encouraged to join in such consortium. Also, active efforts will be made to advance the reform of payment methods, through which gross medical insurance payments will be packaged and made to a medical consortium, and to establish the mechanism under which members' surplus quota will be retained for future use while the excessive amount will be appropriately apportioned among members of the consortium. Furthermore, the Plan calls for efforts to promote the separation of treatment of acute diseases from that of chronic diseases and ensure effective contractual services from family doctors.