President Hugo Chavez warned that his government could take over private hospitals if they continue raising prices for care.

Chvez made the remark during a speech at the presidential palace, saying if private hospitals "keep speculating, increasing prices, they will have to be regulated."

"Any private hospital that doesn't comply with the regulations that are made, if necessary, will have to be nationalised," Chavez said. "We cannot allow there to be a shameless looting using such important services as health."

A state takeover of certain private hospitals, if carried out, couldsignificantly expand Chvez's nationalisation drive which already includes concerns such as electrical companies, Venezuela's largest telecom and lucrative oil projects in the Orinoco River basin.

Venezuela has a two-tiered health system under which wealthier, insured patients often can afford prompter, better treatment at private hospitals. Patients at public hospitals regularly must wait weeks or sometimes months for surgeries.

Public health system

Chvez has expanded the public health system, however, building new clinics, refurbishing hospitals and sending thousands of Cuban and Venezuelan doctors to live in poor neighbourhoods and provide free health care.

"We are obligated to protect all of the population, including the middle class and also the rich," Chvez said.

Previously government officials had said there were no particular plans for private hospitals to be nationalized last month Chvez ordered the expropriation of a hospital managed by Venezuela's Anticancer Association, saying the nonprofit Organization failed to meet its obligations to the public.

Chvez also warned that private schools need more regulation, though he did not elaborate.

- AP