Another 39,965 children received outpatient treatment at hospitals and were considered "basically recovered," the ministry said.
The ministry said most of the children sickened consumed infant formula from one company, the Shijiazhuang Sanlu Group Co.
During the weekend, the Chinese territory of Hong Kong reported the first known illness outside mainland China - a 3-year-old girl who developed kidney stones after drinking Chinese dairy products. She was discharged from the hospital, the Hong Kong government said.
In the two weeks since the government first acknowledged the contamination, it has issued recalls for dairy products from 22 companies after tests turned up traces of melamine. The Health Ministry said that most of the hospitalized were sickened by powdered milk and formula.
"The hospitalized children basically consumed Sanlu brand infant milk powder. No cases have been found from ingesting liquid milk," said the statement.
Melamine is used in making plastics and is high in nitrogen, which registers as protein in tests of milk. Though health specialists believe ingesting minute amounts poses no danger, melamine can cause kidney stones, which can lead to kidney failure. Infants are particularly vulnerable.
Some of the farmers who sell milk to Chinese food companies are thought to have used melamine to disguise watered-down milk and fatten profit margins hurt by rising costs for feed, fuel, and labor.
The ministry did not say why the number of hospitalized cases had suddenly doubled from 6,200 on Saturday, but it suggested that health officials were combing through hospital records from May through August to trace the origins of the contamination. The deaths of three infants linked to tainted infant formula occurred in those months, the statement said.
In Hong Kong, parents of the 3-year-old girl took her for a checkup because she had been drinking milk made by Chinese dairy Yili Industrial Group Co. every day for the past 15 months. Yili was among the 22 companies whose products were recalled for melamine contamination.