Guangzhou is planning to set up a credit rating system for hospitals covered by medical insurance, and hospitals compelling patients to use extraneous medicines not covered by insurance will be punished.

The plan was released at a meeting on social insurance and medical service management in Guangzhou on Tuesday, the Guangzhou Daily reported.

Nansha and Luogang districts, two new districts in the city, will be under the management of Guangzhou's existing social insurance and medical service management system.

By June 2005, the city's medical insurance system has covered 608 hospitals and pharmacies. In the past year, more than 126,000 insured people were hospitalized.

The new credit grading system is expected to tighten control on hospitals in utilizing medical insurance services, said Zheng Yuhua, deputy head of the labor and social insurance bureau of Guangzhou.

"Hospitals and pharmacies under the medical insurance system will be classified into three grades, 3A, 2A and A. Organizations with higher credit can have the priority in executing new projects, while those that fail in meeting the credit requirement will be punished," said Zheng.

The bureau will periodically report on the services provided by the hospitals and pharmacies, and doctors will be responsible for that the medical expenses of patients don't spiral out of control, he said.

Editor: Donald