China to pour $120bn into health

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China announced on Wednesday that it plans to spend more than $120bn (£87bn) on reforming the country's healthcare system in the next three years.

The money will be spent on improving health insurance to give more people basic cover and also on raising standards in public hospitals.

There is growing public anger about the state of China's health system.

The situation has been worrying the government for some time, and is the subject of intense political debate.

The State Council, or Cabinet, said the investment was a preliminary estimate and will involve all levels of government.

By 2011, it stated, the government's target is for most of the population to be covered by basic health insurance, for the cost of services to be reduced and quality improved.

That is good news for many in China who either face or fear the burden of medical costs.

China's old state system was dismantled in the 1990s as part of the economic reforms.

As a result, basic services in rural areas collapsed, and many people now travel to the cities for treatment, making their own decisions about which specialists they need to see.

Some people are covered by insurance schemes, but it is estimated that about half the money paid out in China each year comes directly from the patients' own pockets.

These sums can be crippling. If someone needs hospital care or has a serious illness, the impact on a family's finances can be devastating.

Aging population

The health system also faces a growing long-term challenge.

Changes in diet and lifestyle mean a growing percentage of people have chronic diseases, like heart attacks, strokes and cancer.

That adds to the demand on medical services - and puts pressure on the government to spend much more on prevention, from screening to education.