China will inject more funds and let the market play a bigger role in reforming its medical sector, according to an executive meeting of the State Council on March 25.

The country will work to establish a universal medical insurance system, speed up reform in public hospitals, and relax market entry requirements for the private sector to build health institutions in an orderly manner, said a statement issued after the meeting.

It was decided at the meeting that a national database will be set up to facilitate the reimbursement of medical costs for patients across different regions, and a public hospital reform program will be expanded to cover more than half of all county-level hospitals.

The scale of public hospitals, which provide 90 percent of China's medical services, will be controlled and medical resources will be optimized, according to the meeting.

Non-public hospitals and public hospitals will be treated equally in terms of access to medical insurance programs and other qualifications.

The State Council has also announced that it will raise the percentage of shares that foreigners may own in medical joint ventures and improve welfare for rural doctors.