Audit Storm Hits Public Hospitals: Irregularities in Procurement and Operations Exposed

Deep News
Nov 11

Multiple public hospitals have come under scrutiny for violations such as irregular procurement, unpaid debts, and tied sales, as audit reports reveal widespread issues across the country.

**1. Audit Findings Across Regions Highlight Procurement Violations** Recent audits in Shanghai’s Qingpu District targeted three institutions, including Fudan University-affiliated Zhongshan Hospital Qingpu Branch and Qingpu Mental Health Center. The audit covered January 2022 to June 2024, uncovering irregularities in medical equipment procurement. For instance: - Zhongshan Hospital Qingpu Branch improperly procured 14 medical devices worth ¥9.17 million. - Suppliers with conflicts of interest participated in bids for nine projects (¥1.85 million). - Two hospitals conducted 19 irregular procurements (¥9.88 million).

Similar reports emerged elsewhere: - **Yunnan Kunming**: 52 public hospitals colluded in bids or bypassed procurement rules for drugs, consumables, and equipment; 15 institutions delayed payments. - **Guangdong**: Six hospitals manipulated tenders to favor specific suppliers, involving 13 projects (¥176 million). - **Ningxia Yinchuan**: Suppliers tied equipment sales to reagent purchases, inflating costs by ¥2.22 million; 60 SMEs faced overdue payments (¥3.74 million). - **Hubei Xianning**: A maternity hospital overcharged patients ¥47,100 and violated procurement rules.

Other regions like Sichuan Yibin, Zhejiang Cangnan, and Liaoning Chaoyang also reported bid-rigging, unpaid dues, and unfulfilled centralized procurement commitments.

**2. Enhanced Oversight: Audits and Big Data Drive Reform** In June, China’s National Health Commission and 13 other agencies mandated stricter audits to curb malpractice in medical procurement. Recent signals suggest deeper scrutiny: - On November 7, the National Audit Office published research emphasizing oversight of medical device procurement. - **Guizhou’s study** exposed collusion, supplier favoritism, and kickbacks. - **Henan’s report** flagged non-compliance in tendering, equipment management, and pricing. - **Hubei’s team** advocated big data tools to audit billing, procurement, and corruption.

Provinces like Shandong and Gansu are already deploying analytics: - Shandong’s models identified suspect markups (e.g., 47 imported devices priced over ¥5 million). - Lanzhou’s audit bureau used Oracle and Python to detect overpricing in drugs and consumables.

With audits intensifying and technology enabling precision, the medical sector faces sustained regulatory pressure to root out misconduct.

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