The Ministry of Health issued a circular Tuesday that allows individuals to set up private clinics in several pilot cities from July 1.

In order to win permission, applicants must be physicians who have worked in health care or medical institutions for five years in total after gaining a physician certification, according to the document, and they must also be healthy and unemployed or retired.

The service scope of a private clinic must be in accordance with the physician's professional field, and the clinic must meet various standards set down by the ministry, said the circular.

In the circular, the ministry also encouraged experienced doctors to set up traditional Chinese medicine clinics.

The pilot program will run from July 1, 2011 to June 30, 2012 in Tianjin, Shenyang, Changchun, Xiamen and Kunming.