A reported rise in fake psychiatric hospitals and insurance fraud in China has drawn attention to pressures linked to the country’s ageing population, according to a media report.

A report by The Diplomat cited a recent scam in which private psychiatric hospitals allegedly admitted patients under false pretences to claim large sums from government medical insurance funds.

Referring to The Beijing News, it noted that dozens of psychiatric hospitals in Xiangyang and Yichang cities were offering inpatient treatment either free or at minimal cost.

In China, treatment is usually partly covered by medical insurance programmes, with patients typically expected to pay at least a portion themselves. However, an undercover reporter recorded treatment costs of around 140 yuan per patient per day, with most of that reportedly reimbursed through state insurance.

Patients drawn by free shelter, poor conditions reported

Some of the hospitals reportedly housed only a few patients, while others had more than 100. Patients were mainly alcoholics and elderly people attracted by free food and accommodation.

The reporter also documented poor living conditions. Physical and verbal abuse were said to be common, and patients were allegedly made to clean facilities, bathe others and carry out other menial tasks.

In certain cases, hospitals reportedly made it difficult for patients to leave after admission, sometimes for years.

Ageing population pressures highlighted

“This highlights the limitations of China’s current elder care system, which assumes that the vast majority of elderly people will be cared for at home, by their families,” the report said.

“Many of the elderly people recruited for the scam came from rural areas, where pensions are particularly tiny, and government services are weaker. Moreover, countless villages have been hollowed out as working-age people seek work elsewhere, leaving many rural elderly isolated from their families,” the report said.