China plans to cultivate a large number of competitive private medical institutions to complete a diversified multilayered healthcare system by 2020, which is expected to meet growing demands for customized services.

The target was set in a guideline that encourages private businesses to provide diversified medical services, which was approved at a State Council executive meeting presided over by Premier Li Keqiang on Wednesday.

Encouraging privately run medical services is vital to developing a prosperous healthcare industry, unleashing the potential for domestic consumption and promoting economic restructuring and upgrading, the guideline said.