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Hubei authorities detain 24 after probe into psychiatric hospital insurance fraud

By Wang Xiaoyu | chinadaily.com.cn | Updated: 2026-02-13 23:29
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Local authorities in Hubei province said on Friday that 15 hospital executives or employees and nine government officials have been detained following an investigation into insurance fraud at dozens of local psychiatric hospitals.

The investigation team, led by provincial-level authorities under the guidance of the nation's top health and healthcare security regulators, released a report saying that 10 of the 51 psychiatric hospitals under investigation in the cities of Xiangyang and Yichang were found to have engaged in fraudulent medical practices to commit insurance fraud.

Ten more institutions were found to have offered reduced fees to induce patients, falsified hospitalization records and physically abused individuals with mental disorders.

A comprehensive review of nearly 9,200 hospitalized or recently discharged patients found no instances of admitting individuals without mental disorders. However, issues such as continued hospitalization after clinical recovery and falsified bed occupancy were identified, according to the report.

Nine psychiatric institutions were found to have defrauded a total of about 3.49 million yuan ($502,900) from the national medical insurance fund over the past two years. Methods included fabricating medical service items, inflating medical service costs and forging medical documents.?

Local public security authorities have detained 14 hospital executives or employees on suspicion of medical insurance fraud, and one hospital accountant has been detained for allegedly concealing accounting vouchers.

Administrative penalties have been imposed on four hospital nurses who were found to have slapped, kicked or struck patients on the head or neck.

Officials from local healthcare security, health and administrative approval departments were found to have exploited their positions to provide assistance to psychiatric hospitals in exchange for money, property and banquets.

Nine officials have been detained and are under investigation on suspicion of bribery and abuse of power.?

The city governments of Xiangyang and Yichang have been ordered to submit written self-inspections. A number of government officials, including the deputy director of the Hubei provincial health commission, the deputy director of the provincial healthcare security bureau, and the mayor of Xiangyang, have been held accountable.

The 10 hospitals committing insurance frauds will be handled seriously in accordance with law and efforts will be made to ensure that affected patients receive proper treatment and care.?

The provincial government has vowed to launch a campaign to address prominent issues in mental health institutions and the management of medical insurance funds.

It pledged a zero-tolerance approach while investigating and handling related illegal activities, and vowed to strengthen oversight of mental health institutions and medical insurance funds to effectively safeguard patient rights and interests, rectify existing malpractices and promote the standardized and healthy development of the sector.

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