CHINA

Regulator Exposes $27.4 Million Bribery Ring at Major Chinese Hospital

Published: Sep. 15, 2026 3:52 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

China’s national healthcare regulator has exposed a massive bribery ring at a prominent public hospital, detailing how medical staff pocketed 184 million yuan ($27.4 million) in kickbacks over 11 years, laying bare the entrenched corruption in the country’s medical-device supply chain.

The National Healthcare Security Administration disclosed on Sept. 13 that the Second Hospital of Hebei Medical University accepted bribes from more than 30 companies on 46 separate occasions.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and Bloomberg - for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

A bribery ring at the Second Hospital of Hebei Medical University involved 184 million yuan ($27.4 million) in kickbacks over 11 years from 30+ companies.
Payments centered on cardiovascular devices and drugs; a single bribe hit 16.58 million yuan, with doctors receiving 5,000 yuan per stent.
Beijing’s centralized procurement cut coronary stent prices by an average of 93%; over 20 top doctors have been caught since 2019.

AI generated, for reference only

Who’s Who

Hebei Xiang'en Medical Device Trade Co. Ltd.: Hebei Xiang'en Medical Device Trade Co. Ltd. was implicated in corporate bribery at the Second Hospital of Hebei Medical University, paying 20.64 million yuan in kickbacks. It was among 11 companies involved, primarily small regional distributors with minimal registered staff, according to a Caixin review.

Medtronic: Medtronic, a medical-device giant, was implicated in a bribery scandal at China's Second Hospital of Hebei Medical University. Its distributors paid cash kickbacks to hospital officials and cardiology department heads starting in 2014, including 5,000 yuan per stent used, contributing to a broader 184 million yuan bribery scheme exposed by regulators.

AI generated, for reference only

What Happened When

Before 1918：: No event specified, but hospital founded in 1918

Founded in 1918：: Second Hospital of Hebei Medical University was established

Starting in 2014：: Distributors for Medtronic began paying cash kickbacks to Li Yongjun and two cardiology department heads

Since 2019：: More than 20 top doctors have been caught in corruption crackdown, including Xu Bo and Yang Zhijian

In 2020：: Beijing launched a centralized bulk-procurement program for high-value medical consumables, starting with coronary stents

In August 2023：: Li Yongjun was placed under investigation by provincial anti-graft authorities

In 2024：: Hospital reported revenues of 5.515 billion yuan, a 6% drop from previous year, with expenses rising to 5.617 billion yuan

In 2025：: Hospital reported 3.29 million outpatient and emergency visits

In November 2025：: Court documents were published providing details on graft mechanics

In the second half of 2025：: Hospital was involved in nine additional criminal judgments

By Sept. 13, 2026：: National Healthcare Security Administration disclosed that the hospital accepted bribes from over 30 companies on 46 occasions

AI generated, for reference only