All the gains from the fee reform in Hong Kong’s public healthcare system will be wholly utilized for public services, Secretary for Health Lo Chung-mau said Wednesday.

Answering a query at the Legislative Council, Lo said the reforms in fees and charges are meant to enhance the protection for "poor, acute, serious, critical" patients and reduce wastage.

“Through the fees and charges reform, we can guide the public to make optimal use of healthcare resources, reduce wastage and abuse, and enhance the healthcare protection for ‘poor, acute, serious, critical’ patients on all fronts,” Lo said.

He said this would ensure the public healthcare system can provide subsidies in a more precise and targeted manner while better serving as a safety net for all.

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Government officials announced on Tuesday that the city’s public healthcare system will be reformed starting next year, with higher service charges for non-urgent cases and an annual cap on medical expenses.

The first phase of the fee reform is expected generate an additional HK$3 billion ($385.9 million) annually for the city to increase public medical resources, while easing the financial burdens of about 70,000 patients who rely on hospital services frequently.

Lo said the reforms will be implemented in a gradual and orderly manner over the next five years and aim to maintain a high overall public subsidization rate of 90 percent.

To ensure that the underprivileged are protected, the reforms also include improving the medical fee waiver mechanism by raising the income and asset eligibility limits to largely enhance support for low-income families and the underprivileged group.

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An annual cap of HK$10,000 on public healthcare service items (except self-financed drugs and medical devices) would be introduced to take better care of patients with serious illnesses and provide protection to city residents, Lo said.

And by expediting the introduction of more effective and innovative drugs and medical devices, more patients with critical conditions, in particular middle-income persons, can receive subsidies for self-financed drugs and medical devices, he added.

Lo said the SAR government also plans to launch a consultation exercise on legislating enhancing private healthcare price transparency later this year.

“To achieve meaningful reform on healthcare system in Hong Kong, it is imperative to enhance private healthcare price transparency alongside with the reforms on the public sector, whilst promoting the adoption of quality and outcome indicators across healthcare services,” he said.