According to the white paper, by 2011 the reimbursement rate for hospitalization expenses under the system reached roughly 55 percent.

But Zhang also conceded that medical care resources, especially those of high quality, are still in short supply in rural areas and grassroots-level health institutions.

"That will be the long-term challenge facing the country," he noted, adding that quality resources, especially medical talent, are now concentrated in cities and large hospitals.

In response, the government has invested more than 47 billion yuan ($7.5 billion) in the past three years to support grassroots-level hospitals.

"We could help equip them with advanced medical infrastructure, but it's more important and tough to enhance capacities there," Zhang said.

More professional training will be given to medical staff at grassroots-level hospitals with support from large hospitals in cities, he said.

Meanwhile, "favorable policies will be issued to attract highly competent medics", he said.

Also, by 2015, the country will train 150,000 general practitioners particularly for grassroots-level hospitals, according to Zhang.

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