About 20,000 cases of illegal overcharging by hospitals, involving US$157.2 million (1.3 billion yuan), have been investigated in China since the beginning of the year, an official from the State Development Planning Commission ( SDPC) said Friday.

Deputy Director of the State Development Planning Commission Price Inspection Department Li Zengqi announced at a press conference that 11 hospitals have been punished for their illegal overcharging, with US$3.1 million (25.8 million yuan) in illicit income confiscated.

Although the Chinese government has frequently reiterated that hospitals are not allowed to overcharge patients, some hospitals are still raising the price of medicine, medical services and disposable products for medical use, Li said.

According to the SDPC, in a bid to relieve patients' financial burdens, the government has fixed the maximum prices of more than 1,000 types of medicine, and, since October 1997, has reduced fixed prices on 10 occasions. In doing so, it has saved US$2.2 billion (18 billion yuan) for patients.

Li said that price administrations at various levels should continue examining the price of medicine and medical services, and punish violators by giving warnings, confiscating illegal income, imposing fines and revoking licences.

Li Lei, deputy director of the SDPC Price Department, said the government is exploring new ways of regulating medical prices under the framework of the market economy.

To resolve the existing problems, medical treatment and medicine sales should be managed separately, the medical insurance system be improved, and laws be perfected, Li said.

(China Daily 09/29/2001)