SHANGHAI - China's province leaders should increase their attention to healthcare investment, China's Minister Of Health Chen Zhu told reporters during the third session of the eleventh National People's Congress, the most influential meeting in China.

"At a time of financial crisis, local governments are most willing to spend on projects related to economic development. They wouldn't blink an eye in spending millions of RMB on economic projects, but when it comes to health projects, why are they so reluctant to spend?" Chen said.

China planned to implement the Essential Drug List in 30 percent of state-owned clinics in 2009. However, the implementation was delayed to this March, due to insufficient investment from local governments and various regional problems in the provinces (Also see "China Delays Implementation Of Essential Drugs List; Analysts Say List Has Less Impact Than Earlier Predicted" - Scrip, 5 February, 2010.).

"The healthcare [investment] is not 'burning money.' It is a most important strategy investment for the future of a nation," Chen said.

Investment in the healthcare sector will lead to opportunities for economic development and create more jobs, and it is not only for "pharmaceutical or medical devices companies, but also the future of the service industry," Chen said.

The proportion of government investment accounts for 25 percent of the total medical expense in China, which is "still too low," the minister said.

Chen also suggested that the central government should double the support to the rural medical insurance system and raise the government fund to RMB 300 ($44) per person.

Chen's EDL plan to cover 60 percent of clinics by the end of this year mostly depends on local government investment, and the minister said he already seeing a positive impact from the drug list. "The prices for drugs [listed on the EDL] have declined 25-50 percent in many provinces, since the implementation of EDL," he announced.

The minister also disclosed several public health projects to launch, which included a project to prevent infectious diseases and chronic diseases among migrant workers.

- Dai Jialing (j.dai@elsevier.com)

China's Minister Of Health Calls For More Regional Support For Healthcare Reform

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