China's public hospital reform plan is on track and will be implemented upon approval of the State Council, the Ministry of Health said Tuesday.

An earlier report claiming the plan is delayed is not true, said Deng Haihua, a spokesman of the ministry at a press conference. It was claimed "complicated affiliations of hospitals and lack of ways to offer compensation" led to the delay.

A pilot plan is being examined by the State Council, said Deng, without giving a specific date when it will be enacted.

Due to a lack of government funding, public hospitals have, for years, mainly operated using profits from medical services and drug prescriptions, which meant a heavy burden on patients. Under the reform plan, the government will be responsible for giving subsidies to public hospitals and set up monitoring institutions to ensure transparency in management and quality of medical service.