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BEIJING -- China's State Council, or the Cabinet,
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According to the meeting,
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"Regular channels and ways of funding and subsidizing grassroots medical organizations should be established to ensure their smooth operation and development and the successful implementation of essential medicines system,
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Government authorities should allocate enough funds so medical institutes could purchase basic medical facilities and equipment while also arranging subsidies for medical staff.
However, some medical institutions were short of revenue because of the lowered drug prices,
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Over half of China's medical clinics based in rural townships and small urban communities have already been offering essential medicines at low prices since August 2009 due to the ongoing healthcare reform, according to a statement issued after a State Council executive meeting presided over by Premier Wen Jiabao.
To ensure low income-earners can afford essential medicines,
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