BEIJING - China will improve the sound development of private hospitals in a bid to increase medical service supplying and improve people's wellbeing.

The decision was made at a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.

Deepening reform of the medicine and healthcare system and actively promoting the development of private hospitals will help meet people's needs for medical services, better stimulate market vitality and unleash service consumption potential, said a statement released after the meeting.

Space for the development of private hospitals should be expanded, it said, adding that government departments should not impose restrictions on the aggregate volume as well as layout of private hospitals.

The meeting also required enhancing approval efficiency for private hospitals and that all localities should establish a cross-department approval mechanism by the end of this year.

China will beef up policy support for private hospitals and treat them equally with public ones in terms of interprovincial on-the-spot settlement of medical bills through basic medical insurance accounts.

Private hospitals will be encouraged to conduct cooperations with public medical institutions in developing Internet Plus Healthcare models and carrying out remote medicare services, according to the statement.

Private hospitals providing services in communities will enjoy reduction or exemption of fees and taxes in accordance with related rules.

Meanwhile, supervision over the sector will also be enhanced to crack down on violations.