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Local government of Hubei has formed a joint investigation team and dispatched it to Xiangyang and Yichang to conduct an in-depth probe into issues raised by media reports, including allegations that some psychiatric hospitals admitted patients in violation of regulations and were suspected of fraudulently obtaining medical insurance funds, Hubei government said on its WeChat account on Wednesday.

The joint investigation team is composed of officials from the provincial commission for discipline inspection and supervision, the provincial health commission, public security department, medical insurance administration, among other authorities.

Any issues reported by the media or the public will be handled strictly in accordance with discipline and the law once verified, with accountability pursued against those responsible. The results of the investigation and subsequent actions will be released to the public in a timely manner, according to the government statement.

The announcement came after reports of multiple psychiatric hospitals in Xiangyang and Yichang in Hubei Province, admitting patients in violation of regulations and allegedly defrauding medical insurance funds have sparked widespread public concern.

In December 2025, reporters from The Beijing News went undercover as caregivers at several psychiatric hospitals in Xiangyang and Yichang, exposing a large-scale medical insurance fraud scheme within the sector.

The hospitals allegedly lured elderly people and individuals seeking treatment for alcoholism with promises of "free hospitalization" and "free transportation," while caregivers and security staff were instructed to pose as "psychiatric patients."

According to the Beijing News, the hospitals fabricated treatment items and falsified medical records to siphon off insurance funds, and periodically arranged "fake discharges" to evade regulatory scrutiny. Patients reportedly received little or no effective treatment and were subjected to harsh management practices, including physical abuse. In some cases, the conditions were so severe that patients died by suicide.

On Tuesday, local governments in Xiangyang and Yichang told The Beijing News that they had formed investigation teams to carry out a strict probe into illegal medical insurance practices at psychiatric hospitals.

Global Times