This is the script of CNBC's news report for China's CCTV on April 22, Tuesday.
Welcome to the CNBC Business Daily.
Chinese President Xi Jinping has backtracked on the country's policy of capping medicine retail prices in his move to provide affordable healthcare.
The country is now set to allow pharmaceutical companies to set prices for some drugs.
The government is also amping up its bid to promote investment in the sector to support burdened public hospitals.
But how about the private hospitals?
U.S. healthcare provider Chindex, which services in China, has agreed to a sweetened $461 million dollar takeover offer from a group led by private equity group TPG and Shanghai Fosun Pharma.
CNBC's Eunice Yoon looks at Chindex's prescription for profit.
If you travel to Beijing, and find yourself under the weather, you could very well wind up at this hospital run by American Roberta Lipson.
She was one of the first to establish a private hospital in China.
And if the government has its way, there could be more of them.
[Roberta Lipson/Founder, United Family Healthcare/CEO Chindex International] "The private sector should play a supplemental role to the public system."
Lipson's Nasdaq-listed company Chindex manages a chain of clinics here.
She first arrived in 1979 selling medical equipment as the economy was opening to the world.
This whole concept of private healthcare in the People's Republic of China, a Communist country was to some people abhorrent to some people laughable people couldn't figure it how you can make a return on such a thing.
[Roberta Lipson/Founder, United Family Healthcare/CEO Chindex International] "By 1997, we finally had the final approval. It took 180 different government chops to finally get our doors opened."
The government wants to reform health care.
The system here is dominated by the state, but public hospitals like this one are overtaxed and underfunded so too many Chinese consumers save for future medical bills rather than spend.
Right now only 12 percent of China's hospital beds are private.
By 2015, the government wants to raise that to 20 percent.
Yet it's unclear how quickly the doors will open wider - private health care providers are burdened with red tape.
"Now of course the government has decide that private healthcare is an integral part of their healthcare reform plan. The approval process has been somewhat simplified but what's really satisfying to me is that the government now really recognizes well-regulated well run private hospitals can take some of the pressure off the public system."
With health care spending here estimated to hit 1 trillion dollars by 2020, that could be just the remedy China needs.
Eunice Yoon CNBC Beijing.
Chindex International shares were up by 3% on Monday's close.
The stock... rising by over 35% this year, far surpassing the benchmark S&P500 index, which is up 1.3%.
That wraps up this edition of the Business Daily.
I'm Sri Jegarajah, reporting from CNBC's Asian headquarters.