China launches new crackdown on medical insurance fraud in mental health sector

Chinese authorities have launched a new nationwide crackdown on medical insurance fraud at mental health institutions, following media reports that some hospitals were offering free services to attract patients and improperly claim insurance funds.

The campaign was announced this week by the National Healthcare Security Administration, which ordered provincial-level authorities to tighten oversight of designated mental health facilities and eliminate what it described as illegal or non-compliant use of medical insurance money.

In a notice issued on Wednesday, the NHSA said all provinces must summon local officials responsible for supervising mental health institutions and reinforce management controls. The agency said recent problems uncovered by the media in Hubei province, along with findings from previous inspections elsewhere, should be used as warning examples to educate institutions nationwide.

Local reports in Hubei had highlighted practices in which hospitals allegedly provided free or discounted services to compete for patients, raising concerns that such tactics were being used to inflate insurance claims.

The NHSA said provincial departments must also organise comprehensive self-inspections at mental health institutions under their jurisdiction. Any violations identified during these reviews are to be rectified promptly, with follow-up reports submitted to the national authority by the end of March.

China has stepped up scrutiny of medical insurance fraud in recent years as part of broader efforts to protect public funds and rein in abuses within the healthcare system. The latest move signals heightened attention on the mental health sector, which has expanded rapidly amid rising demand for psychological and psychiatric services.

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