Hubei Probes Psychiatric Hospitals Over Alleged Insurance Fraud

Local authorities in Xiangyang, central China's Hubei Province, have launched an investigation into several psychiatric hospitals following media allegations of illegal patient admissions and medical insurance fraud.

The probe was triggered by a report by The Beijing News today, which revealed systematic misconduct in the local mental healthcare sector.

According to the report, multiple hospitals in Xiangyang lured patients with promises of "free hospitalization and transportation," even sending staff to recruit from rural areas. Undercover journalists found facilities admitting elderly individuals and others without clear psychiatric symptoms. In some cases, hospital employees posed as patients to fill beds.

The scheme aimed to fraudulently claim state medical insurance funds. Hospitals falsified treatment records while providing little beyond basic medication, with no meaningful therapy.

A related practice was uncovered in Yichang, where a psychiatric hospital cycled patients through "temporary discharges" to skirt insurance limits on long-term stays. Patients were also shifted between hospitals ahead of official inspections.

The report accused the institutions of treating patients as "cash cows," operating with insufficient staffing and equipment, and failing to provide adequate care.