Article 37 People's governments at the county level and above shall develop and implement plans for the development of the medical and healthcare service system, scientifically allocate medical and healthcare resources, establish medical and healthcare institutions, and ensure citizens' access to basic medical and healthcare services.

When establishing medical and healthcare institutions, governments shall take into consideration such factors as population, economic and social development conditions, medical and healthcare resources, health risk factors, incidence rate and prevalence rate of diseases, and emergency rescue needs within their respective administrative regions.

Article 38 In order to be established, a medical or healthcare institution must meet the following conditions and undergo the examination and approval or recordation formalities in accordance with the relevant provisions of the state:

(1) It has a name, organizational body and site that comply with applicable requirements; 

(2) It has funds, facilities, equipment and medical and healthcare professionals compatible with its business; 

(3) It has corresponding rules and regulations; 

(4) It is able to independently assume civil liabilities; 

(5) Other conditions as prescribed by laws and administrative regulations. 

Medical institutions shall obtain practicing license in accordance with law. It is prohibited to counterfeit, alter, sell or buy, lease or lend any practicing license. 

Medical and healthcare institutions of all types and at all levels shall comply with the standards on specific conditions and components of medical and healthcare institutions developed by the health department under the State Council. 

Article 39 The state conducts classified administration of medical and healthcare institutions. 

The medical and healthcare system shall adhere to the principle of taking nonprofit medical and healthcare institutions as the main body and for-profit medical and healthcare institutions as supplements. Government-run nonprofit medical and healthcare institutions shall play a dominant role in the basic medical and healthcare undertaking, so as to ensure the equality and accessibility of basic medical and healthcare services. 

No medical and healthcare institution established in whole or in part by government funds or donated assets shall be established as for-profit institution. 

Medical and healthcare institutions shall not engage in external leasing or contracting of any of their medical departments. Nonprofit medical and healthcare institutions shall not distribute revenues to their sponsors and founders or do so in a disguised form. 

Article 40 Government-run medical and healthcare institutions shall adhere to their public welfare nature, incorporate all revenues and expenses into budget management, and rationally set and control their scale in accordance with plans for the medical and healthcare service system. 

The state encourages government-run medical and healthcare institutions to establish nonprofit medical and healthcare institutions in collaboration with the private sector. 

Government-run medical and healthcare institutions shall neither invest with other organizations to establish any medical or healthcare institution without the qualification of an independent legal person, nor jointly establish for-profit medical or healthcare institutions in collaboration with non-governmental funds. 

Article 41 The state takes various measures to encourage and guide the private sector to run medical and healthcare institutions in accordance with law, and supports and regulates their cooperation with the government-run medical and healthcare institutions in such fields as various types of medical services, discipline construction and talent training. 

Medical and healthcare institutions run by the private sector shall enjoy the same right as government-run medical and healthcare institutions in terms of contract with basic medical insurance funds, construction of key specialties, scientific research and education, grade review, specific medical technique access, and professional title review of medical and healthcare professionals. 

The private sector may choose to establish for-profit or nonprofit medical and healthcare institutions. Nonprofit medical and healthcare institutions run by the private sector shall enjoy the same policies as government-run medical and healthcare institutions in terms of taxation, fiscal subsidy, and the use of land, water, electricity, gas and heat as provided for by applicable provisions, and shall be supervised and regulated in accordance with law. 

Article 42 Based on existing medical and healthcare institutions, the state rationally plans and sets up national and regional clinical centers for diagnosing and treating complicated severe diseases, conducting research to overcome major medical difficulties, and cultivating high-level medical and healthcare professionals. 

Article 43 Medical and healthcare institutions shall comply with laws, administrative regulations and rules, establish and improve internal quality management and control system, and be responsible for the quality of medical and healthcare services. 

Medical and healthcare institutions shall, in accordance with clinical diagnosis and treatment guidelines, clinical technical operation specifications, industry standards, medical ethics and other relevant requirements, rationally conduct examination, prescription, diagnosis and treatment, strengthen the prevention of medical and healthcare safety risks, optimize service process, and continuously improve the quality of medical and healthcare services. 

Article 44 The state conducts classified management of clinical application of medical and healthcare techniques, and carries out strict management of medical and healthcare techniques with high technical difficulties, high medical risk, and high demand on the service capacity and competence of medical and healthcare professionals. 

The clinical application of medical and healthcare techniques carried out by medical and healthcare institutions shall be compatible with the functions and tasks of such institutions, comply with the principles of scientificity, safety, standardization, effectiveness and economy, and meet ethical requirements. 

Article 45 The state establishes a modern hospital management system characterized by clearly defined powers and responsibilities, scientific management, sound governance, efficient operation, and effective supervision. 

Hospitals shall develop bylaws, establish a sound legal person governance structure, and strengthen the capacity and operational efficiency of medical and healthcare services. 

Article 46 Practicing places of medical and healthcare institutions are public places that provide medical and healthcare services. No organization or individual shall disturb the order in such places. 

Article 47 The state improves the medical risk-sharing mechanism, encourages medical institutions to participate in medical liability insurance or establish medical risk funds, and encourages patients to participate in medical accident insurance. 

Article 48 The state encourages medical and healthcare institutions to continuously improve techniques, equipment and services of prevention, healthcare, diagnosis, treatment, nursing and rehabilitation, and supports the development of medical and healthcare technologies that suit the primary level and remote areas. 

Article 49 The state promotes health informatization for the whole people, advances the application and development of health and medical big data and artificial intelligence, accelerates medical and healthcare information infrastructure construction, develops technical standards on the collection, storage, analysis and application of medical and health data, and promotes the popularization and sharing of high-quality medical and healthcare resources through information technology. 

People's governments at the county level and above and their relevant departments shall take measures to advance the application of information technology in the medical and healthcare field and in medical education, and support and explore the development of new modes and new business patterns of medical and healthcare services. 

The state takes measures to encourage medical and healthcare institutions to establish and improve medical and healthcare information exchange and information security systems, provide remote medical services through the application of information technology, and build an integrated online and offline medical services mode. 

Article 50 In the occurrence of natural disasters, accidental disasters, public health incidents, social security incidents and other emergencies that severely threaten people's life and health, medical and healthcare institutions and medical and healthcare professionals shall obey the arrangements by government departments, participate in health emergency responses and medical treatment. Those who get sick, become disabled or die as a result of such participation shall be given such treatments as compensation for occupational injury, pension for the disabled or for the family of the deceased or the honorary title as martyrs in accordance with relevant provisions. 

Chapter IV

Medical and Healthcare Professionals

Article 51 Medical and healthcare professionals shall carry forward the lofty professional spirit of respecting life, healing the wounded and rescuing the dying, being dedicated, and maintaining boundless love, comply with industry standards, adhere to medical ethics, and strive to improve their professional level and quality of services. 

Medical and healthcare industrial associations, medical and healthcare institutions and medical colleges and universities shall strengthen the education of medical and healthcare professionals on medical ethics. 

Article 52 The state develops training programs for medical and healthcare professionals, establishes training mechanisms that reflect characteristics of the health sector and needs of the society to achieve the supply and demand balance of medical and healthcare professionals, improves the medical education system consisting of college education, post-graduation education and continuous education, establishes and improves standardized training programs for resident and specialist doctors, and builds up medical and healthcare professional teams with appropriate size, reasonable structure, and rational distribution. 

The state strengthens the training and utilization of general practitioners. General practitioners shall mainly provide such services as diagnosis, treatment, referral, prevention, healthcare and rehabilitation of common diseases and frequently-occurring diseases, chronic diseases management, and health management.

Article 53 The state implements a practice registration system for doctors, nurses and other medical and healthcare professionals in accordance with law. Medical and healthcare professionals shall obtain corresponding occupational qualifications in accordance with law. 

Article 54 Medical and healthcare professionals shall follow the law of medical science, comply with technical specifications on clinical diagnosis and treatment, rules for operation, and medical ethics, use appropriate techniques and drugs, provide rational diagnosis and treatment, conduct treatment in light of sickness, and shall not give overtreatment to patients.

Health professionals shall not illegally ask for or accept money or property from their patients or seek other illicit interests by taking advantage of their positions. 

Article 55 The state establishes and improves medical and healthcare personnel, remuneration and reward systems that are compatible with the characteristics of the medical and healthcare sector and embody the occupational characteristics and the value of technical work of medical and healthcare professionals. 

Medical and healthcare professionals engaged in the prevention and control of infectious diseases, radioactive medicine, mental health work or working in other special posts shall be given appropriate allowances in accordance with the provisions promulgated by the state. Allowance standards shall be regularly adjusted. 

Article 56 The state establishes a mechanism for medical and healthcare professionals to deliver medical and healthcare services at the primary level and in remote areas or areas with harsh living conditions on a regular basis. 

The state takes such measures as free medical students training programs, directional support, and re-employment after retirement to strengthen medical and healthcare professional teams at the primary level and in remote areas or areas with harsh living conditions. 

In order to acquire an associate senior professional title, a practicing physician shall have an accumulated experience over one year in providing medical and healthcare services at a medical and healthcare institution at or below the county level or in a recipient medical and healthcare institution of a directional support program. 

Medical and healthcare professionals working at the primary level and in remote areas or areas with harsh living conditions shall be entitled to preferential treatments in remunerations and allowances, professional title evaluation, career development, education and training, and honors and rewards, among others. 

The state strengthens medical and healthcare professional teams in rural areas, establishes a career development mechanism characterized by vertical linkage between villages, townships and counties, and improves the multi-channel service income subsidy mechanism and pension policies for medical and healthcare professionals working in rural areas. 

Article 57 The whole society shall care for and respect medical and healthcare professionals, maintain a sound and safe order of medical and healthcare services, and jointly form a harmonious doctor-patient relationship. 

The personal safety and dignity of medical and healthcare professionals shall not be violated, and their lawful rights and interests shall be protected by law. No organization or individual may threaten or endanger the personal safety of medical and healthcare professionals, or violate their personal dignity. 

The state takes measures to safeguard the practicing environment of medical and healthcare professionals. 

Chapter V

Guarantee of Medicine Supply

Article 58 The state improves the medicine supply guarantee system and establishes a coordination mechanism to ensure the safety, efficacy and accessibility of medicines.

Article 59 The state implements an essential medicine system, and selects appropriate number of essential medicines to meet basic needs of disease prevention and control. 

The state issues national essential medicine list, and dynamically adjusts the list in light of such circumstances as clinical drug application practice, changes in drug standards, and launch of new drugs. 

Essential medicines shall, as provided by relevant provisions, be preferentially incorporated in the medicine list covered by basic medical insurance. 

The state improves the capacity for the supply of essential medicines, strengthens supervision over the quality of essential medicines, and ensures equitable access to and rational use of essential medicines. 

Article 60 The state establishes and improves a clinical needs-oriented drug review and approval system, and supports research and production of drugs in urgent clinical needs, pediatric drugs, and drugs for prevention and control of rare diseases and major diseases, so as to meet the needs of disease prevention and control. 

Article 61 The state establishes and improves a whole-process tracing system for the research, development, manufacture, distribution and use of drugs, so as to strengthen drug management and ensure drug quality. 

Article 62 The state establishes and improves a drug price monitoring system, conducts investigation into cost prices, strengthens drug price supervision and inspection, investigates and punishes price monopoly, price fraud, unfair competition and other illegal acts, and maintains the order of drug price. 

The state strengthens categorized management and guidance of drug procurement. A bidder participating in drug procurement bidding shall not bid at a price lower than cost or bid by fraud, collusion, abuse of its market dominant position, or other unlawful means. 

Article 63 The state establishes both national and local medical product reserve systems for guaranteeing emergency supply in major disasters, epidemics and other emergencies. 

Article 64 The state establishes and improves a drug supply and demand monitoring system, collects, summarizes and analyzes information about drug supply and demand in a timely manner, and regularly discloses information about the production, distribution and use of drugs. 

Article 65 The state strengthens the management of medical devices, improves standards and specifications on medical devices, and raises the safety and efficacy level of medical devices. 

The health department under the State Council and health departments of people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in light of the advancement, appropriateness and accessibility of techniques, develop allocation plans for large-scale medical equipment, and promote rational allocation and sufficient sharing of medical resources within their respective administrative regions. 

Article 66 The state strengthens the protection and development of traditional Chinese medicine, fully demonstrates the characteristics and advantages of traditional Chinese medicine, and maximizes the role of traditional Chinese medicine in prevention, healthcare, medical treatment and rehabilitation. 

Chapter VI

Heath Promotion 

Article 67 People's governments at all levels shall strengthen health education and training of health professional, establish a health knowledge and skill core information release system, popularize health science knowledge, and provide the public with scientific and accurate health information. 

Medical and healthcare, education, sports and publicity institutions, grassroots self-governing mass organizations and social organizations shall carry out publicity and popularization of health knowledge. When providing medical and healthcare services, medical and healthcare professionals shall carry out health education for patients. New media shall carry out public interest health knowledge publicity. The publicity of health knowledge shall be scientific and accurate. 

Article 68 The state incorporates health education into the national education system. Schools shall carry out health education in various forms, popularize health knowledge, scientific fitness knowledge, and first-aid knowledge and skills, improve students' awareness of active disease prevention, help students to cultivate sound health habits and healthy behaviors, and reduce and improve students' such adverse health conditions as myopia and obesity. 

Schools shall provide physical and health courses, and organize students to carry out such activities as radio gymnastic exercises, eye exercises, and physical exercises in accordance with relevant provisions. 

Schools shall appoint school doctors, and establish and improve medical rooms and health rooms in accordance with relevant provisions.

Education departments of people's governments at the county level and above shall incorporate students' level of physical fitness into school assessment system in accordance with relevant provisions. 

Article 69 Citizens undertake the primary responsibility for their own health. They shall establish and practice a health management concept of being responsible for their own health, actively acquire health knowledge, improve health literacy, and strengthen health management. Family members shall be encouraged to care for each other and form a healthy lifestyle that suits themselves and family characteristics. 

Citizens shall respect the health rights and interests of others and shall not harm others' health or public interests. 

Article 70 The state organizes investigation into and statistical survey of residents' health conditions, conducts monitoring of the people's physique, evaluates health performance, and, on the basis of evaluation results, formulates and improves laws, administrative regulations, policies and plans on health. 

Article 71 The state establishes monitoring, investigation and risk assessment system for diseases and health risk factors. People's governments at the county level and above and the departments concerned shall focus on main problems that affect health, organize and conduct research on health risk factors, and develop comprehensive prevention and control measures. 

The state strengthens the prevention and treatment of environmental problems that affect health, organizes research on the impact of environmental quality on health, and takes measures to prevent and control diseases related to environmental problems. 

Article 72 The state vigorously carries out patriotic sanitation campaign, encourages and supports such mass sanitation and health activities as patriotic sanitary month, relies on and mobilizes the public to contain and eliminate health risk factors, improve environmental sanitation conditions, and build healthy cities, villages, towns and communities. 

Article 73 The state establishes a scientific and strict supervision and administration system for the safety of food and drinking water, and improves the safety level. 

Article 74 The state establishes a nutrition monitoring system, implements nutrition intervention plans for underdeveloped areas and key groups of people, carries out nutrition improvement projects for minors and the elderly, advocates healthy dietary habits, and reduces the risk of diseases caused by unhealthy diet. 

Article 75 The state develops the national fitness undertaking, improves the national fitness public service system covering both urban and rural areas, strengthens the construction of public sports facilities, organizes, implements and supports national fitness activities, improves national fitness guidance services, and popularizes scientific fitness knowledge and methods. 

The state encourages entities to open their sports facilities to the public.