China Probes Psychiatric Hospitals for Insurance Fraud

Central China's Hubei province is investigating multiple private psychiatric hospitals suspected of defrauding the public medical insurance system. These institutions allegedly lured patients with offers of free long-term care. They are accused of systematically billing insurance funds for treatments that were not medically necessary or entirely fabricated.

A joint task force, comprising key provincial commissions and departments, is conducting an in-depth investigation. This probe was initiated following a report detailing allegations of widespread schemes in Xiangyang and Yichang cities. Hospitals reportedly used patient information to submit fraudulent claims for fictitious treatments.

The National Healthcare Security Administration has mandated a nationwide crackdown on such fraudulent practices. Psychiatric institutions are now required to conduct self-inspections and refund illicitly obtained funds by March 15. Unannounced inspections will target these facilities throughout the year, with severe penalties, including criminal investigation, for serious violations.