The State Council decided on Thursday to put private-capital-invested hospitals in the medical insurance system, a move designed to encourage the development of medical institutions.

Among other measures, the approval process to set up a hospital or clinic will be streamlined, and preconditions including the number of beds will be canceled.

Nonprofit private-capital-invested medical institutions that provide basic healthcare service should get subsidies from the government, and hospitals invested with private capital will see other favorable policies such as tax cuts, the State Council said.