China probes mental hospitals over reports patients are being locked up in insurance scam

China’s top medical watchdog has ordered a nationwide review of the country’s psychiatric institutes following media reports that multiple hospitals in central China had locked up patients – including people who were not suffering from mental illness – as part of an insurance scam.

The National Healthcare Security Administration said on Wednesday that its provincial bureaus should hold talks with directors of all psychiatric institutes in their area by Sunday.

They were also told to ensure that thorough checks into possible illegal activity were organised by March 15 and appropriate action taken.

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Areas of investigation included whether institutes had caused people to be hospitalised for no good reason, faked medical conditions and treatment or forged documents.

“They should submit a report and refund any illegally used medical insurance funds,” the statement said.

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On Tuesday, the Beijing News reported that patients in multiple psychiatric institutes in Hubei province were being exploited to skim off subsidies under the national medical insurance scheme.

South China Morning Post

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