Public hospital salary reform enters final sprint: Strictly prohibit linking salaries to pharmaceuticals, medical supplies, and diagnostic tests.

2018 was a pivotal year as the pilot program for public hospital salary reforms expanded significantly. According to the relevant plans outlined by the Ministry of Human Resources and Social Security along with three other ministries, this year, in addition to the previously designated pilot cities, at least one more public hospital in each of the remaining cities will be selected to participate in the salary system reform pilot. With less than five months left until the end of this round of pilots, public hospitals across the country are now entering the final sprint phase of their salary reform initiatives.

　　Recently, Guangdong Province issued the "Guangdong Province Action Plan for Deepening Comprehensive Reform of Public Hospitals," which proposes accelerating the pilot program for reforming public hospital salary systems and establishing a compensation distribution mechanism that aligns with industry-specific characteristics. Building on Huizhou City's previous pilot initiatives, Guangdong has now added Shenzhen, Zhuhai, Dongguan, and Foshan to this year's list of cities selected for the specialized pilot program on public hospital salary system reform. The Action Plan emphasizes refining methods for determining overall salary levels and performance-based pay, empowering public hospitals with greater autonomy in internal allocation, fostering an incentive-driven culture, reinforcing public welfare principles, boosting the enthusiasm of medical staff, and promoting a target annual salary system for key hospital leaders.

　　Other regions are also accelerating efforts in this area. For instance, Jilin Province has proposed establishing a performance evaluation mechanism and internal distribution system oriented toward public welfare, encouraging greater rewards for those who work harder and recognize outstanding performance, thereby enhancing the attractiveness of various positions. Meanwhile, Liaoning Province has emphasized that it strictly prohibits setting revenue targets for medical staff and ensures that healthcare professionals' salaries will not be tied to income generated from drugs, consumables, or medical tests.

　　“Promoting salary reform in public hospitals is the ‘key link’ for deepening public hospital reforms and strengthening the public welfare nature of these institutions,” said Guan Bo, an associate researcher at the Institute of Social Development under China’s National Development and Reform Commission, in an interview with Economic Information Daily. He added that establishing a more rational income distribution system in public hospitals—one that aligns with the industry’s unique characteristics, such as long training periods, high occupational risks, significant technical challenges, and heavy accountability—will not only reflect the economic value of medical professionals but also fundamentally curb issues like overtreatment and profit-driven demand manipulation in healthcare services.

　　Given the unique characteristics of the healthcare industry, reforming the salary system is a complex undertaking that can significantly impact the success or failure of broader medical reforms. "In piloting salary reforms in public hospitals, it's crucial to emphasize the reforms' comprehensiveness, fairness, and scalability," said Guan Bo. He added that salary reforms should be closely linked with other management initiatives, such as reforms in medical insurance payment methods, hospital personnel systems, and performance evaluation mechanisms. Additionally, it’s essential to strike a balance across various roles—medical staff, nursing teams, technicians, pharmacists, and administrative professionals—ensuring that key managers and high-level talents are adequately rewarded while also boosting the compensation of frontline clinical experts. At the same time, resources should be strategically directed toward critical departments and positions, such as pediatrics, to address shortages and maximize the leverage effect of salary reforms in optimizing resource allocation and enhancing overall employee motivation.