Wuxi hospital fined and shut down due to illegal use of funds

A hospital in Wuxi, Jiangsu province has been fined 58.95 million yuan ($8.24 million) and stripped of its operating license for cheating to get medical insurance funds.

The Wuxi Hongqiao Hospital was given a fine by the Wuxi Healthcare Security Administration recently for fabricating medical records and services to get the funds from Jan 1, 2022, to Sept 22, 2024, according to an administrative punishment release from the local government.

In a separate administrative punishment handed out by the Wuxi Health Commission recently, the hospital's operating license has been revoked for fabricating medical records to obtain the funds.

An earlier investigation by the National Healthcare Security Administration found that the hospital is suspected to have illegally used medical insurance funds totaling 22.3 million yuan.

The hospital is also accused of committing fraud to get funds totaling 11.79 million yuan by fabricating medical records, treatment and services.