By the end of October 2010，the three-year plan for implementing new health reforms has come to the stage for mid-term evaluation. 30 provincial and municipal governments have made public their local reform proposals. In early 2010，the central government’s guide for public hospital reforms was promulgated and 16 cities were selected as the sites for carrying out pilot programs. Meanwhile，the government makes great efforts to curtail unreasonably high drugs price in public hospitals and to implement essential drugs system at grassroots levels. Many new initiatives in reforming pharmaceutical regulations fail to create reasonable incentives among public providers. Therefore，medical and health reform needs to be carefully planned in greater details.