Li Guangming, chief of Central Hospital of Nanchong, Sichuan Province, said, "If medicine profits are largely eliminated, which is about 20 million yuan in our hospital, we will need the local government's financial support."

Nanchong city's annual revenue is more than 2 billion yuan. One tenth of that will be needed if the policy is carried out.

Yang Chengguo, Chief of Nanchong Health Bureau, said, "Local finances can hardly meet the demand."

Many cities in Sichuan have the same problem as Nanchong. To tackle the issue, many hospitals plan to increase service prices.

Shen Yi, Chief of Health Bureau of Sichuan Province, said, "I have calculated, if we increase the costs for operations and beds, the hospital can earn ten thousand if the patients pay 12 thousand. But if we make profit through medicine sales, the patients will have to pay 80 to 90 thousand, while we earn ten thousand."

Shen says increases in service prices, which are artificially low, will not only motivate doctors, but will also provide benefits for patients.