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The ministry is collecting medical records and checking statistics to make preparations for compensation, spokesman Mao Qun'an told reporters.
Mao said he "has not been authorized to release details" about the compensation plan but assured the media that relevant departments are working on it and will release the results after the plan is adopted.
Mao also said local governments paid a large amount of money for hospital ultrasound equipment and medication after more than 22 million children needed testing after drinking formula containing an industrial chemical known as melamine. That testing started in September.
Children who were confirmed to have developed kidney stones received free treatment.
The ministry said earlier it was likely six babies died from drinking toxic milk powder. Another 294,000 infants suffered from urinary problems such as kidney stones.
The General Administration of Quality Supervision, Inspection and Quarantine publicized the names of 22 dairy companies which produced milk products containing melamine after milk powder produced by Sanlu Group was found to contain the banned chemical in mid September.