The procuratorate of Xianyang City, Shaanxi Province recently investigated a major case of corruption in the medical system. The heads of six public hospitals in Xianyang, Ankang and Hanzhong were involved in the case, including eight deputy deans and four department heads, allegedly in medical equipment. The purchase received bribes, involving a total amount of 2.6 million yuan, of which a dean received a bribe amount of 1.2 million yuan.
The author's investigation found that medical corruption cases mainly involved three areas: drug procurement, equipment procurement, and infrastructure projects. Most of the infrastructure projects are one-time and short-term corruption, while the drug and equipment sector is long-term and stable due to its procurement behavior. It is easy to form a fixed chain of corruption. According to the Chinese refereeing documents established by the Supreme Law, the author has found that since 2014, there have been more than 180 cases concerning the procurement of medical devices and equipment in the country.
Medical equipment consumables profit is around 30% to 40%
In March of this year, the Xianyang County Disciplinary Committee of Suihua County investigated the medical system related violations in the county and found that the county Chinese medicine hospital had serious violations of laws and regulations in the procurement of medical equipment.
According to Xiao Binchang, deputy director of the Anti-Corruption Bureau of the Xianyang Municipal People's Procuratorate, after receiving the clue, the procuratorate conducted a trial against Huang, the manager of Jiangsu Guoan Medical Equipment Co., Ltd., suspected of bribery. Huang confessed that he had paid bribes to eight deputy directors and four chiefs of six hospitals in Suihua, Ankang, Hanzhong and Xianyang, totaling 2.6 million yuan.
When the prosecution searched the home of the president of a county people's hospital in Ankang City involved in the case, he found a cardboard box containing 500,000 yuan in cash. In addition to acknowledging the acceptance of Hwang’s bribe, the dean also offered to accept that he had accepted another company’s bribe.
At present, 15 cases have been filed in the case, including 3 people suspected of bribery, 12 people suspected of accepting bribes, and 10 people have been arrested.
Huang has been involved in the medical device industry since 2009. The company and the hospitals have cooperated in two ways. One is to directly sell CT machines and other equipment to the hospital, and the other is to use the “rental†method to share operating profits with the hospital.
According to Hwang, the average amount of bribes received by the president of each hospital is about 300,000 yuan. The amount of the case of Zou Mou, the president of Hanyin County People's Hospital, is as high as 1.2 million yuan. In order to maintain a relationship with the hospital, Hwang is a painstaking effort. After paying 300,000 yuan to a dean of Shiquan County Chinese Medicine Hospital in Ankang City, the dean suddenly transferred. In order to let the new leader take care of the "co-operated" medical equipment, Hwang sent a watch worth 10,000 yuan to the successor.
In order to let the hospital use more of its products, Hwang continued to “handle†the person in charge of the equipment department and gave him a certain percentage of rebates according to the number of times the consumables were used. According to preliminary investigations, the heads of four equipment departments in the six hospitals involved were arrested, and the amount of bribes was about 80,000 yuan.
Behind the "hitting", there is an amazing profit margin. The actual price of a medical device sold by Huang to the Hanyin County People's Hospital was only 3.7 million yuan, and the price sold to the hospital was 8.3 million yuan. Hwang confessed that the profits of medical equipment supplies provided by his company to various hospitals ranged from 30% to 40%.
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