Original Title: Notice of the General Office of the People’s Government of Shandong Province on Issuing the Construction Plan for the Shandong Provincial National Comprehensive Reform Demonstration Zone for Traditional Chinese Medicine Construction Plan for the Shandong Provincial National Comprehensive Reform Demonstration Zone for Traditional Chinese Medicine

　　This plan is formulated to implement the spirit of the 19th National Congress of the Communist Party of China and its subsequent plenary sessions, to carry out General Secretary Xi Jinping’s important directives on traditional Chinese medicine (TCM) work, to meet the requirements for establishing a National Comprehensive Reform Demonstration Zone for Traditional Chinese Medicine, and to align with the actual conditions of TCM work in Shandong Province.

　　I. Overall Objectives

　　Guided by the construction of the National Comprehensive Reform Demonstration Zone for Traditional Chinese Medicine, by 2025, the TCM service system will be further improved, and its distinctive strengths in preventive healthcare, treatment of major diseases, and rehabilitation will be further highlighted. The capacity for the inheritance and innovation of TCM will be further strengthened, and the core competitiveness of the industry will be further enhanced. The modernization of the TCM governance system and governance capabilities will be further optimized, and the contribution of TCM to public health will be further increased. A number of landmark reform and innovation achievements will be formed, serving as a model for the entire country.

　　II. Key Tasks

　　(1) Improve the governance system for the high-quality development of TCM. Implement institutionalized and regularized working mechanisms for provincial, municipal, and county-level leading groups on promoting TCM development; leading groups at all levels shall convene at least one plenary meeting annually. Public TCM hospitals shall fully implement and enforce the system of hospital directors’ responsibility under the leadership of the Party committee, and earnestly advance the integration of Party building into institutional bylaws.Continuously improve the TCM management system and ensure that TCM management agencies at all levels are fully staffed with capable personnel. Health (TCM) departments at all levels must integrate TCM into the overall work framework—planning, advancing, implementing, and evaluating it as a unified whole—and strive to establish a three-tiered (provincial, municipal, and county) work system and operational mechanism characterized by strong leadership, smooth coordination, and equal emphasis on both TCM and Western medicine.Increase investment in TCM work, implement preferential funding policies for TCM, and allocate funds for the development of TCM within the overall health and wellness budget while increasing support. Establish a funding mechanism that aligns with the development patterns of TCM hospitals. Strengthen support for basic research on traditional Chinese medicine and continue to advance the project approval process for the TCM Joint Fund under the Shandong Provincial Natural Science Foundation.(Led by the Provincial Health Commission [Provincial Bureau of Traditional Chinese Medicine], the Provincial Party Committee’s Office of Institutional Reform, the Provincial Department of Finance, and the Provincial Department of Science and Technology; supported by the Provincial Development and Reform Commission and the Provincial Department of Human Resources and Social Security)

　　(2) Build a high-level TCM service system. Support the affiliated hospitals of Shandong University of Traditional Chinese Medicine in establishing National Centers for the Inheritance and Innovation of Traditional Chinese Medicine, National Regional Medical Centers (TCM), and National Bases for the Prevention and Control of TCM-related Infectious Diseases. Ensure that municipal-level TCM hospitals achieve the “Grade III Class A TCM Hospital” standard and county-level TCM hospitals achieve the “Grade II Class A TCM Hospital” standard.Government-run TCM hospitals at the secondary level and above shall establish departments for preventive medicine and rehabilitation; government-run general hospitals, maternal and child health hospitals, and infectious disease hospitals shall establish clinical TCM departments. All Grade III public TCM hospitals and integrated TCM-Western medicine hospitals (excluding specialized TCM hospitals) shall establish fever clinics. Promote the upgrading of TCM service capabilities, carry out pilot projects for the high-quality development of public TCM hospitals, and fully implement the participation of TCM in the “Healthy Shandong” initiative.Standardize the uniform promotion of clinically superior and appropriate TCM techniques. All county-level TCM hospitals shall establish centers for the promotion of appropriate TCM techniques and develop two specialty departments with distinctive TCM strengths. Community health service centers and township health centers shall standardize the implementation of at least 10 appropriate TCM techniques, while all community health service stations and more than 85% of village health clinics shall be capable of standardizing the implementation of at least six appropriate TCM techniques.We will continue to advance the development of integrated traditional and Western medicine. In government-run general hospitals, maternal and child health hospitals, infectious disease hospitals, and specialized hospitals, we will promote an integrated medical model characterized by “clear mechanisms, dedicated teams, effective measures, and tangible results.” We will incorporate integrated medicine initiatives into hospital accreditation and performance evaluations for public hospitals, promote the standardization of Chinese medicine pharmacies, and strengthen the allocation of TCM physicians in clinical departments.strive to establish national “flagship” hospitals for integrated traditional and Western medicine, and launch pilot projects for provincial-level “flagship” hospitals and departments in this field. Relying on the Affiliated Eye Hospital of Shandong University of Traditional Chinese Medicine, we will establish the Shandong Provincial Center for Integrated Traditional and Western Medicine in Ophthalmology to create a national benchmark in this field.For common adolescent conditions such as visual impairment and scoliosis, we will leverage the Provincial TCM Prevention and Control Center for Visual Impairment in Children and Adolescents, the Integrated Traditional and Western Medicine Center for Myopia Prevention and Treatment in Children and Adolescents, and the Provincial TCM Prevention and Treatment Center for Scoliosis in Children and Adolescents to cultivate specialized technical service teams. We will improve the three-tier prevention and treatment bases and service networks at the provincial, municipal, and county levels to build the “Qilu” brand for adolescent health services.(Responsibility to be shared by the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine], Provincial Development and Reform Commission, Provincial Party Committee Organization Department, Provincial Department of Finance, Provincial Department of Education, Provincial State-owned Assets Supervision and Administration Commission, Provincial Department of Human Resources and Social Security, and Provincial Department of Science and Technology)

　　(3) Reform TCM pricing and medical insurance policies. Deepen the reform of TCM medical service pricing, further liberalizing pricing for TCM medical services where market competition is relatively robust and personalized demand is strong. Conduct price adjustment assessments and promptly adjust prices for items that meet the criteria for adjustment.Based on the characteristics of TCM medical services, prioritize the inclusion of service items in the price adjustment scope that demonstrate significant therapeutic efficacy, are widely accepted by patients, possess distinctive advantages, reflect the value of labor, have a long history of application, and exhibit a significant deviation between cost and price. For traditional TCM techniques derived from ancient classics, widely applied, and with proven efficacy, as well as innovative TCM technologies with prominent economic advantages, establish a green channel for the review of new price items and promptly include them in the scope of medical insurance coverage in accordance with regulations.Regional planning and layout of medical institutions shall be tilted toward TCM medical institutions; those that meet the criteria shall be promptly included in the management of designated medical insurance institutions and the scope of direct settlement for cross-regional medical treatment. Support shall be provided for the development of closely integrated county-level medical consortia led by TCM medical institutions to promote the decentralization of high-quality TCM medical resources. Therapeutic Chinese herbal preparations permitted for transfer between medical institutions shall be included in the scope of medical insurance coverage in accordance with regulations.Encourage primary-care medical institutions to promote and use appropriate TCM technologies. For insured patients receiving inpatient TCM treatment at township health centers and community health service centers, the medical insurance reimbursement rate for compliant medical expenses shall be no less than 85%. Promote diagnosis-related group (DRG) payment for TCM-advantaged conditions. Select conditions with distinct advantages, clear treatment pathways, and transparent costs to be included in the list of TCM-advantaged conditions, implement DRG payment, reasonably determine payment standards, and fully reflect the value of TCM services.Advance inter-provincial alliance procurement of Chinese herbal decoction pieces. Leverage the market advantages and strategic purchasing strengths of the procurement alliance regions to conduct centralized, volume-based procurement of Chinese herbal decoction pieces on behalf of medical institutions in the alliance regions. Complete the first round of joint procurement and implement the results by 2022. (Led by the Provincial Medical Insurance Bureau, with cooperation from the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine] and the Provincial Drug Administration)

　　(4) Deepen reforms in the TCM talent cultivation model. Reform the educational model of TCM institutions, summarize innovative experiences from programs such as the Youth Class and Traditional TCM Class, optimize and consolidate specialty classes such as the Bian Que Class, Cang Gong Class, and Hua Tuo Class, reform the TCM curriculum system, and establish an online micro-specialization in TCM classics through Shandong University of Traditional Chinese Medicine.Implement the agreement between the Provincial Bureau and Shandong University of Traditional Chinese Medicine to build a first-class TCM university, and support the university in leading the establishment of the Yellow River Basin TCM Education Alliance. Fully integrate the “Three Classics Inheritance” initiative into the Studios of Renowned Physicians and the Qilu TCM Specialty Clusters to enhance clinical proficiency in TCM classics, classical formulas, and empirical knowledge. Strengthen the development of apprenticeship education platforms, and include apprenticeship and clinical practice as core indicators in the construction of Qilu TCM Academic School Inheritance Studios. Innovate multi-channel TCM talent cultivation models.Deepen the “Western Medicine Learning Traditional Chinese Medicine” talent development initiative by establishing introductory, core, and advanced classes; refine and optimize the five-tier apprenticeship system; and promote full coverage of apprenticeship education in TCM medical institutions. Strengthen the identification, systematization, and transmission of distinctive TCM therapies to cultivate specialized TCM talent. (Led by the Provincial Health Commission [Provincial Bureau of Traditional Chinese Medicine] and the Provincial Department of Education)

　　(5) Strengthen full-process supervision of Chinese herbal medicine quality. Deepen the implementation of the “Breakthrough in Chinese Herbal Medicine” initiative.Revise and amend the *Shandong Provincial Standards for Chinese Medicinal Materials*, *Shandong Provincial Specifications for the Processing of Chinese Herbal Slices*, and *Shandong Provincial Standards for Chinese Herbal Granules*. Encourage the stepwise transformation of classic formulas into medical institution preparations and new Chinese patent medicines; explore a distinctive Chinese medicine evaluation evidence system that integrates traditional theories, clinical experience, and clinical trials; and streamline the review and approval procedures for Chinese medicine preparations produced by medical institutions. Optimize the procedures for resuming production of long-discontinued Chinese patent medicine varieties and promote the resumption of production for promising dormant varieties.Strengthen post-registration inspections and routine supervision of TCM clinical trial institutions to continuously improve the quality and standards of TCM clinical research. Support manufacturers in strengthening cooperation with medical institutions, universities, and research institutions to conduct secondary development of marketed TCM proprietary preparations. Enhance regional cooperation and explore the joint establishment of testing laboratories or inspection and testing platforms in regions with concentrated production of authentic medicinal materials, TCM herbal markets, or TCM manufacturing enterprises to collaboratively promote the high-quality development of the TCM industry.Intensify quality supervision of herbal materials, processed herbal slices, TCM formulations, and medical institution preparations, focusing on issues with processed herbal slices by conducting special inspections and random sampling. Implement the “Four Strictest” requirements (the strictest standards, the strictest supervision, the harshest penalties, and the most serious accountability). Legally penalize and address any violations to effectively ensure the quality and safety of TCM.Encourage manufacturers of prepared Chinese herbal slices to extend their quality assurance systems to cover the cultivation, harvesting, and processing of Chinese herbal materials, thereby strengthening quality control at the source and exploring the establishment of a traceability system covering the entire production and operation process of prepared Chinese herbal slices. (Led by the Provincial Drug Administration, with support from the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine], the Provincial Department of Science and Technology, the Provincial Department of Agriculture and Rural Affairs, and the Provincial Department of Commerce)

　　(6) Establish an evaluation mechanism tailored to the characteristics of traditional Chinese medicine.Improve the talent evaluation mechanism to reflect the characteristics of TCM, focusing on the ability to diagnose and treat diseases effectively, as well as skills in TCM preparation and identification, as the primary evaluation criteria for TCM practitioners. Refine the selection mechanism for renowned TCM physicians, adjust and optimize the structural ratios of positions in TCM medical institutions, improve the system for the evaluation and appointment of professional titles in TCM, scientifically and dynamically adjust the specialties for senior professional title evaluations in TCM, implement a system for representative works, and establish a “three-in-one” evaluation system encompassing TCM thinking, clinical competence (professional skills), and social recognition.Implement a categorized evaluation system for TCM professionals. Give appropriate priority to the TCM sector in the selection of various talent programs. Establish and refine scientific and technological evaluation standards for TCM, and follow the principles of TCM to implement categorized evaluations in the initiation, acceptance, and award processes of TCM research projects. Building on the inclusion of scientific and technological achievements in the medical field within our province’s pilot reform of scientific and technological achievement evaluation, continue to deepen and improve the evaluation of scientific and technological achievements.Strengthen the operational model and service functions of TCM hospitals, with a focus on TCM services, and gradually establish hospital operating mechanisms conducive to leveraging the distinctive strengths of TCM. Regularly advance performance evaluations and grading assessments for public TCM hospitals, using the evaluation results as key references for public hospital development planning, fiscal investment, budget allocation, total salary determination, and adjustments to medical insurance policies.Establish a local evaluation mechanism for the effectiveness of TCM development. Focusing on the TCM management system, service system, service capacity, talent development, inheritance and innovation, cultural development, and industrial development, explore the construction of an evaluation indicator system for TCM development. (Responsibility to be shared by the Organization Department of the Provincial Party Committee, the Provincial Development and Reform Commission, the Provincial Department of Education, the Provincial Department of Science and Technology, the Provincial Department of Industry and Information Technology, the Provincial Department of Finance, the Provincial Department of Human Resources and Social Security, the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine], the Provincial Medical Insurance Bureau, and the Provincial Drug Administration)

　　(7) Deepen reforms of the TCM medical insurance payment system. Tilt medical insurance payment reforms toward TCM; in regions implementing Diagnosis-Related Group (DRG) or Diagnosis-Based Payment (DIP) systems, appropriately increase the coefficients and point values for TCM medical institutions and TCM disease categories.Encourage the provision of daytime TCM medical services for TCM conditions characterized by long treatment cycles, controllable risks, and the need for continuous treatment; TCM diagnostic and treatment costs that meet the relevant requirements shall be reimbursed and settled in accordance with policies for outpatient chronic and special diseases or inpatient care. Explore the implementation of appropriately higher reimbursement rates for national and provincial-level key TCM specialties and TCM specialty medical institutions, and establish demonstration sites in Dezhou City for medical insurance support of TCM specialty departments and in Weihai City for the development of TCM specialty medical institutions.(Led by the Provincial Medical Insurance Bureau, with support from the Provincial Health Commission [Provincial Bureau of Traditional Chinese Medicine])

　　(8) Deepen the development of TCM service capabilities at the grassroots level. Improve the grassroots TCM service system, implement the National “14th Five-Year Plan” Action Plan for Enhancing Grassroots TCM Service Capabilities, and advance the creation of national model cities and counties for grassroots TCM work. Deepen the construction of county-level medical consortiums led by TCM hospitals; by 2025, ensure that all community health service centers and township health centers establish TCM clinics and are staffed with TCM physicians.Advance the development and expansion of the Qilu TCM Specialty Cluster to drive the standardized improvement of TCM service capabilities at the grassroots level. Promote and implement the “Five General Practice-Oriented” clinical service models—covering TCM classics, preventive medicine, external therapies, rehabilitation, and nursing—in TCM hospitals at the secondary level and above. Enhance the development of smart TCM systems at the grassroots level, comprehensively roll out the construction of “Smart Shared Chinese Medicine Pharmacies,” and, drawing on cities such as Jinan, formulate and issue local construction standards to achieve city-wide coverage of “Smart Shared Chinese Medicine Pharmacies.”Promote the standardized integration of health information platforms from TCM hospitals and TCM clinics into the National Health Information Platform. By 2025, ensure that more than 90% of TCM clinics built with fiscal support are registered and integrated into the TCM Clinic Health Information Platform. (Led by the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine] and the Provincial Department of Finance; supported by the Provincial Medical Insurance Bureau)

　　(9) Strengthen the development of TCM culture. Enhance research and protection of TCM culture by establishing the Shandong Provincial Research Center for the Protection and Utilization of TCM Classics, the Shandong Provincial Collaborative Innovation Center for Traditional TCM Culture, and the Shandong Provincial Digital Library of Ancient TCM Texts and Traditional Knowledge. Strengthen the protection of ancient TCM texts and traditional knowledge, and advance the protection of intangible cultural heritage related to TCM.Organize the Nishan World TCM Forum to high standards, highlighting the three hallmarks of “Confucian-Medical Culture, Hometown of Bian Que, and Birthplace of Acupuncture and Moxibustion” to build a TCM cultural brand. Strengthen the development of TCM cultural education and outreach platforms, achieving full coverage of such platforms in public TCM institutions, and strive for the Shandong Provincial Museum of Traditional Chinese Medicine and the Shandong Provincial Museum of TCM Culture to be designated as national-level museums.By 2025, the number of national and provincial TCM cultural education and outreach bases will increase to 10 and 50, respectively. A number of TCM museums, TCM cultural knowledge corners, cultural corridors, cultural streets, and theme parks will be established. We will intensify the popularization and promotion of TCM culture, advancing its integration into communities, rural areas, government agencies, enterprises, households, and elderly care facilities. We will produce and release a series of creative popular science works on TCM culture, as well as new media content such as TCM-themed animations and short videos.We will continue to carry out the “Traditional Chinese Medicine Accompanies My Growth” initiative, establishing a working mechanism for bringing TCM culture into schools guided by government departments, led by schools, and supported by TCM institutions at all levels. We will select and establish a number of pilot schools for TCM culture in schools and encourage localities to organize rich and diverse TCM cultural activities in schools. (Led by the Provincial Health Commission [Provincial Administration of Traditional Chinese Medicine], in cooperation with the Provincial Publicity Department, the Provincial Department of Education, the Provincial Department of Culture and Tourism, and the Provincial Radio and Television Bureau)

　　III. Implementation Steps

　　(1) Pilot Reform Phase (June 2022 to December 2023). Launch the construction of demonstration zones and encourage cities and departments to take the lead in piloting reform tasks.

　　(2) Comprehensive Rollout Phase (January 2024 to May 2025). Summarize and distill reform experiences from cities and departments, conduct a mid-term evaluation of the demonstration zone construction, further refine institutional mechanisms and relevant policies, and establish an effective pathway for the reform and development of traditional Chinese medicine.

　　(3) Summary and Evaluation Phase (June–December 2025). Comprehensively summarize and evaluate the successful practices and key lessons learned from the construction of the demonstration zones, providing the “Shandong Solution” for modernizing the governance system and capacity for traditional Chinese medicine.

　　IV. Support Measures

　　All cities and departments must incorporate the construction of the demonstration zones into their key tasks, formulate supporting policies and implementation measures, clarify responsible entities, and ensure thorough implementation at every level.Strengthen full-process monitoring of the plan’s implementation, conduct regular supervision and inspections of key indicators and priority tasks, and ensure that all objectives and tasks outlined in the plan are implemented in detail, effectively, and with tangible results. Enhance positive publicity, public opinion oversight, and scientific guidance regarding TCM work and the construction of the demonstration zone; strictly investigate and punish illegal medical practice, false or illegal advertisements, and other illegal activities that endanger public health or damage the reputation of TCM; and strive to foster a favorable atmosphere of “social support, public participation, and shared construction and benefits.”