China's hospitals are losing billions of dollars as a result of regulated prices, state media reported.

Last year, the country's hospitals suffered combined losses of RMB 36.1 billion ($4.62 billion), according to statistics from the Ministry of Health. The reason for the losses was a lack of government subsidies and lower healthcare charges that are a result of new legislation, Health News said.

Township medical institutions and community health service centers suffered comparatively greater losses from medical service income than hospitals at county and urban levels.

In 2005, the losses at township medical institutions were 36 percent and 27 percent at community health service centers, while in county level hospitals the rate was 14 percent and at urban hospitals 13 percent.

On average, the rate climbed 14 percent compared with the previous year. To improve the hospitals' bottom lines, many establishments are now considering raising medical service charges but reducing drug prices and medical examination fees.

Last week, Southern China's Guangdong Province announced it would slash examination fees but raise medical service charges starting at the beginning of next year.

Source:佚名