Recently many fair-price hospitals emerge in an government attempt to appease public grievance against the soaring cost of medical treatment at China's hospitals. These hospitals provided medical service at a comparatively low price and they were funded by the government.However,it is far from the perfect solution to the existing problem in the public health sector. If these fair-price hospitals become mainstreamed hospitals,it would be a step back to the old policy of the government funding hospitals before China launched a campaign to reform its public health service system in 1990s.Should it happen,it would certainly be a challenge to government budgets.The core of the problem is that now public health services are monopolized.Monopoly give public hospitals the freedom to overcharge the patients.What the government should do is to introduce fair competition to the market and take more measures to encourage investment in private hospitals.
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