Public fury as China mental hospitals recruit fake patients for insurance scam
South China Morning Post
by Alice YanFebruary 14, 2026
AI-Generated Deep Dive Summary
Public outrage has erupted in China after revelations that several private psychiatric hospitals in central China are recruiting healthy individuals as fake patients to defraud the public medical insurance system. According to an undercover investigation by *Beijing News*, these facilities in Xiangyang, Hubei province, lure people with promises of "free hospitalization" and low living costs. Many of these so-called patients exhibit no signs of mental illness and receive minimal treatment, while others are completely unaware of the scheme's true purpose.
The scam operates by exploiting personal information from these individuals to file false medical claims with public insurance. By fabricating treatments and exaggerating conditions, the hospitals maximize their profits at the expense of the insurance system. This practice not only drains resources intended for legitimate patients but also raises serious ethical concerns about patient welfare and systemic fraud in healthcare.
The investigation highlights a broader issue of exploitation within China's healthcare system, where financial incentives often overshadow patient care. The recruitment of healthy individuals into psychiatric facilities underscores a worrying trend of institutional abuse and neglect. Many fake patients are manipulated or coerced into participating, with little understanding of the scheme's implications. This not only undermines trust in public insurance but also poses significant risks to vulnerable populations.
The case has sparked widespread anger due to its exploitation of both individuals and public funds. It raises critical questions about oversight in private healthcare facilities and the need for stronger regulations to prevent such fraud. For readers interested in global health, this story sheds light on systemic issues in medical systems and the importance of safeguarding public resources against misuse.
Verticals
worldasia
Originally published on South China Morning Post on 2/14/2026