Beijing - Chinese authorities released a long-awaited health reform action plan last week, but it is only the first step in a long march towards curing endemic problems marring the country's medical system, analysts say. Over the next three years, 850 billion yuan (124 billion dollars) will be spent on lowering the costs of medicines, building and renovating hospitals and clinics, training medical staff, and improving and expanding the current medical insurance scheme.

Acknowledging the size of the task ahead, the government has appointed vice-premier Li Keqiang to head a taskforce comprising 16 government departments to coordinate the implementation of the proposed reforms.

This shows not only the government's commitment, but also an understanding that only a top leader can motivate and unite all departments.

Health care topped the list of Chinese citizens' concerns in a recent survey by the National Bureau of Statistics.

Until the 1980's, health care costs in China were largely covered by the state. When this system was dismantled, medical fees sky-rocketed as under-funded hospitals struggled to keep up with demand.

Between 1985 and 2005, the annual disposable income of Chinese residents increased 20 times, but the amount they spent on health care increased by 133 times, according to Ministry of Health figures.

But reactions to the government's new action plan have seen hope mixed with concern, as analysts question just how certain goals will be met.

"The release of the policy is only the first step in the march towards reform," Peking University economics professor Liu Guo'an told the German Press Agency (dpa)