Despite the introduction of a healthcare reform plan almost a decade ago, it still faces shortages and under-development in rural areas.
Some changes officials are making include eliminating drug mark-ups and making public hospitals more affordable with better staff.
The elimination of drug markups is meant to ease hospitals' dependence on pharmaceutical income.
Another problem is that public hospitals are having trouble caring for all those who need it. Doctors often are overwhelmed since patients travel to larger hospitals to avoid local clinics. So China is emphasizing the need to improve these local centers.
Health insurance is also on the agenda. China's basic medical insurance system now covers over 1.3 billion people. This year, the government is increasing insurance subsidies for non-working urban residents. All of these changes are designed to eliminate inefficiencies over time.