The commission also is requiring local price regulators to carry out other necessary reforms following the measure, including changing medical insurance payments so rising service fees are covered by insurance reimbursement. Also, attention must be given to meeting the basic healthcare needs of low-income people.

Many public hospitals in China had already abolished drug price markups before Wednesday's announcement.

In Beijing, more than 3,600 medical institutions, including all public ones, had abolished the practice starting Saturday.

The measure is expected to lower the cost of outpatient treatment by about 5 percent, but the cost for inpatient treatment, including surgery, will rise by about 2.5 percent, said Li Sufang, deputy director of the Beijing Commission of Development and Reform.

Drug sales accounted for a third of the income of public hospitals last year, according to the Beijing Commission for Health and Family Planning.