China will push forward reform in more public hospitals amid a broader overhaul of its health care system, according to a guideline issued by the State Council on Sunday.

China launched a pilot medical reform on public hospitals in 17 cities in 2010, and the guideline stipulates the reform should cover all of the country's 6,800 public hospitals by 2017.

The reform is aimed to change public hospitals' reliance on medicine sales to supplement their income. Public hospitals should establish a reasonable drug pricing system and retune recruitment and salary policies, said the guideline.

Health insurance should cover most of the medical expenditure, while out-of-pocket money, the private bills paid by each patient should be lower than 30 percent by 2017.

The wider plan is to establish a modern hospital management system, eliminating drug price-added profits and standardizing referral procedures.

Public hospitals should be operated for the public good, instead of seeking lucrative gains, and the service should be accessible, equal and efficient for the people, the guideline said.

It also said social medical care should be encouraged through improved policies and strengthened supervision.

The guideline urged reform at the grassroots-level and nurturing more capable doctors.

Authorities will ensure the optimal distribution of medical resources, establish a scientific subsidy mechanism, and regulate the price of drugs and medical services, according to the guidelines.

Full scale reform of the health care system began in 2009. Pilot projects for public hospital reform were a priority, along with a basic medical security system, improvement at grass roots level and equal access to basic public health services.