Claiming to invest billions of yuan but suddenly applying for cancellation: Who exactly owns "Hebei Chinese Academy of Medical Sciences Cancer Hospital"? News Network | China | Cancellation | Jixin | Chinese Academy of Medical Sciences | Oncology | Hebei | Hospital

Beijing, August 16 (Xinhua) -- Recently, the Cancer Hospital of Hebei Chinese Academy of Medical Sciences, located in Langfang, has taken to the forefront of public opinion due to its sudden application for cancellation.

On August 15th, a reporter from China News Network visited Hebei Hospital on site and found that the word "Hebei" in the hospital name was no longer visible, leaving only "Cancer Hospital of the Chinese Academy of Medical Sciences".

The reporter learned on site that the word "Hebei" was removed a few days ago. A staff member on site, who declined to be named, told reporters that the main buildings of the hospital have been capped, and many medical equipment has also entered the site, with staff inside.

On August 11th, China News Network was the first to report that Hebei Hospital announced in local media on August 9th that it plans to apply for cancellation of registration with the organization registration management authority. This day is less than two years away from its registration.

Although the cancellation has been applied for, there are increasing voices of questioning surrounding Hebei Hospital. For example, why suddenly apply for cancellation? How to dispose of assets after deregistration? Why should the proton radiation therapy system worth billions of yuan purchased by state-owned assets be configured in private hospitals? Why did Hebei Hospital give a large purchase order of over 500 million yuan to a new company that was only established for 2 months and hastily cancelled within a year?

Online public opinion continues to ferment, but so far, the relevant parties have not spoken out. A series of questions remain to be answered.

What are the hidden reasons for suddenly applying for cancellation, and how will the subsequent assets be disposed of?

At first glance, many people would think that this is a public hospital. When a reporter from China News Network visited Hebei Hospital, many local residents also thought that "this is a public hospital, after all, the name contains the two characters' China '.".

Previously, Shenzhen Hospital of the Chinese Academy of Medical Sciences Cancer Hospital and Shanxi Hospital of the Chinese Academy of Medical Sciences Cancer Hospital were both public hospitals.

But this Cancer Hospital of the Chinese Academy of Medical Sciences in Hebei is a private hospital.

On November 24, 2020, the Health Commission of Hebei Province approved the establishment of Hebei Hospital, the Cancer Hospital of the Chinese Academy of Medical Sciences, jointly organized by the Cancer Hospital of the Chinese Academy of Medical Sciences and MCC Jixin Health Industry Co., Ltd. The National Social Organization Credit Information Publicity Platform shows that Hebei Hospital is a private non enterprise unit.

Registration certificate

One is a tertiary Grade A tumor specialty hospital affiliated with the National Health Commission; From the perspective of industrial and commercial information, the actual controller is the Jilin Provincial Department of Finance and should be a state-owned enterprise. Why has a hospital jointly established by two state-owned units become a private hospital?

"If all the investment comes from state-owned assets, according to the law, it is not possible to establish a 'private' institution." Qu Xia, a lawyer and senior partner of Dacheng Law Firm, told China News Network reporters that according to the Interim Regulations on the Registration and Management of Private Non Enterprise Units, private non enterprise units refer to social organizations organized by enterprises, institutions, social organizations, other social forces, and individual citizens using non-state-owned assets to engage in non-profit social service activities. That means that the Hebei Hospital, which claims to be a private institution, should be funded by non-state-owned assets, and where do the non-state-owned assets come from, with one of the two investors being a national institution and the other being a state-owned enterprise?

Zhu Yeqing, Senior Partner of Beijing Online Law Firm, stated that one of the two organizers is a national public institution, and the other is a "state-owned enterprise". The construction funds of the hospital amount to billions of yuan. If the hospital is built by the two units but registered as a private non enterprise unit, it clearly violates legal provisions. If the construction was not funded by the two aforementioned units, then where does such a huge amount of construction funds come from? Who is the investor and why did they not appear as the organizer?

In July 2023, China News Network received a report that one of the organizers of Hebei Hospital, MCC Jixin, was a "fake state-owned enterprise". The investigation by reporters found that the registered capital source of Kanghexin Health and Medical Management Co., Ltd., the major shareholder of MCC Jixin, is unknown. The number of social security participants is 0, and there are also doubts about the equity change. The controlling shareholder in the industrial and commercial registration information is Jilin Trust Co., Ltd., but Kanghexin's figure cannot be found in the information of Jilin Trust. Jilin Trust staff said in an interview with China News Finance that they have "never heard of" this subsidiary. Legal experts say that based on existing information, there are indeed significant doubts about the state-owned enterprise identity of Kanghexin and its 99.58% stake in MCC Jixin.

What's even more intriguing is that on November 16, 2020, Kanghexin fully acquired a natural person wholly-owned company, Beijing Kangyang Architectural Design Consulting Co., Ltd. Subsequently, on November 24th, when the Hebei Provincial Health Commission approved the establishment of Hebei Hospital, MCC Jixin underwent two changes in its absolute controlling shareholder. Beijing Kangyang invested 298 million yuan to acquire all the shares of MCC Jixin held by Jilin Trust, and then Kanghexin invested 298 million yuan to acquire all the shares of MCC Jixin held by Beijing Kangyang. The fact that the equity of state-owned enterprises can easily undergo two changes within a day has also intensified doubts from various sectors about fake state-owned enterprises.

On August 3rd, less than two weeks after the release of the above-mentioned "fake state-owned enterprises" series of reports, the National Enterprise Credit Information Publicity System showed that the legal representative of MCC Jixin had changed from Fu Liewu to Sun Xiushan. On August 9th, Hebei Hospital suddenly applied for cancellation.

During the reporting period, China News Network reporters made multiple phone calls or letters to relevant parties such as the Cancer Hospital of the Chinese Academy of Medical Sciences, MCC Jixin, Hebei Hospital, Jilin Department of Finance, Jilin Trust, etc. However, as of the time of publication, no response has been received from any party regarding the relevant issues.

After deregistration, what will happen to this hospital with a registered capital of 2 million yuan and a claimed investment of over 9 billion yuan? The latest public news shows that the Cancer Hospital of the Chinese Academy of Medical Sciences is preparing for asset acquisition.

According to the article released on the official account of the Cancer Hospital of the Chinese Academy of Medical Sciences, on July 27, the first session of the First Workers' Congress and the second session of the Workers' Congress of the Cancer Hospital of the Chinese Academy of Medical Sciences of the National Cancer Center were held, at which the merger and acquisition of assets of the Langfang Hospital and other matters were voted.

The above-mentioned "Langfang Campus" refers to "Hebei Chinese Academy of Medical Sciences Cancer Hospital".

Zong Haichao, a senior lawyer at Beijing Gao Merck Law Firm, told China News Network reporters that legally, applying for deregistration means that the original establishment unit wants to terminate the legal entity qualification of the private non enterprise unit. It may be that the deregistration cannot be carried out, or it may be a different approach, depending on the decisions of investors and government regulatory authorities. This indirectly proves that there may be some problems in the establishment, approval, investment, and operation process of the project, which cannot be simply adjusted and improved, and can only be achieved through the cancellation mode.

A legal person asked: After the private Hebei hospital applies for cancellation, how will the billions of yuan of assets that have been invested be disposed of? Who is the owner of this asset? How to clarify the equity of the asset between the organizer and investors? Will it involve the loss of state-owned assets? This series of questions related to deregistration need to be answered.

Is it compliant to place proton radiation therapy systems purchased by huge state-owned assets in private hospitals?

Many reports introducing "Hebei Hospital" mention that a major highlight of the project construction is the configuration of a proton radiotherapy system. The article on the website of the Cancer Hospital of the Chinese Academy of Medical Sciences also pointed out that Hebei Hospital will be equipped with the world's most advanced proton therapy system.

It is understood that the device belongs to Class A national planning and configuration of large-scale medical equipment, and is managed by the National Health Commission. According to a document titled "List of Equipment Provided by Cancer Hospitals for Hebei Hospitals" obtained by China News Network, the total price of this batch of equipment alone exceeds 1.14 billion yuan, of which the value of "proton radiation therapy systems and supporting equipment" exceeds 770 million yuan.

The reporter found through inquiry that the list of proton radiation therapy systems approved by the National Health Commission's website includes a total of 2 units from the Cancer Hospital of the Chinese Academy of Medical Sciences. Among them, there is one unit at Shenzhen Hospital of the Chinese Academy of Medical Sciences Cancer Hospital and one unit at the Chinese Academy of Medical Sciences Cancer Hospital. The latter is the only hospital in Beijing that has been approved to install proton radiation therapy systems.

Screenshot of the website of the National Health Commission

The internal publication of the Cancer Hospital of the Chinese Academy of Medical Sciences clearly states that "the Langfang campus of the Cancer Hospital of the Chinese Academy of Medical Sciences and the Shenzhen Hospital of the Cancer Hospital of the Chinese Academy of Medical Sciences are equipped with IBA's large multi chamber proton radiation therapy system. After the project is completed, the Cancer Hospital of the Chinese Academy of Medical Sciences will become the only medical institution in the world that is equipped with two sets of large proton radiation therapy systems at the same time."

Based on this, it can be concluded that the Cancer Hospital of the Chinese Academy of Medical Sciences did not allocate proton radiation therapy equipment to public hospitals in Beijing, but instead placed it in Hebei Hospital, which was not listed in the notice, and this hospital is privately run. Is the proton radiation therapy system purchased by a huge amount of state-owned assets compliant to be placed in private hospitals?

According to sources from relevant departments and bureaus of the Ministry of Finance, the main body approved for the configuration of the proton radiotherapy system at that time was the Cancer Hospital of the Chinese Academy of Medical Sciences. All the materials they submitted did not reflect where they were arranged, so it would definitely be unreasonable if they were indeed allocated to the privately run Hebei Cancer Hospital of the Chinese Academy of Medical Sciences.

According to the feasibility report provided by Hebei when applying for the establishment of medical institutions, the proton project can bring 40 million yuan in revenue to Hebei hospitals annually.

A company that was established for two months won 500 million orders and was deregistered within a year?

According to a project contract provided by insiders to Zhongxin Finance, MCC Jixin, which participated in the co hosting of Hebei Hospital, signed a procurement contract for information technology construction of Hebei Hospital with Meijiarui Health Technology Co., Ltd., which was only two months old, in May 2021 to purchase software and related technical services.

The total contract price is 519.57 million yuan, and the total project duration is 34 months. The contract acceptance standard requires that the quality assurance period provided by Meijiarui shall not be less than 12 months. But on March 12, 2022, this company was deregistered and did not even meet the warranty period required by the contract.

According to sources familiar with the matter, before the cancellation, Meijiarui received at least 90 million yuan in contract payment.

Screenshot of the National Enterprise Credit Information Publicity System

What exactly is the origin of Meijiarui? Why can we receive a large order of 500 million yuan within just two months of establishment? Why was it deregistered less than a year after its establishment? To what extent has this contract been fulfilled? Has MCC Jixin, as a state-owned enterprise, tendered for the project?

As of the time of press release, MCC Jixin has not yet responded to the relevant issues.

Who exactly owns the Cancer Hospital of Hebei Chinese Academy of Medical Sciences?

The convoluted process of the event, the dazzling name changes, and the intricate equity transactions... The series of unconventional operational techniques of this Hebei hospital that is planned to be deregistered have raised many doubts.

From the perspective of the hosting process, the cooperating parties have changed from three parties to two, the Langfang Economic and Technological Development Zone Management Committee has withdrawn, and China Metallurgical Science and Technology Co., Ltd. has become a suspected fake state-owned enterprise, MCC Jixin.

From the name of the hospital, in relevant government websites or media public reports, it was initially called "Cancer Hospital Branch of the Chinese Academy of Medical Sciences" and "Langfang Campus of Cancer Hospital of the Chinese Academy of Medical Sciences". The name approved by the Hebei Provincial Health Commission was "Hebei Hospital of Cancer Hospital of the Chinese Academy of Medical Sciences", and the name registered in the civil affairs system was "Hebei Cancer Hospital of the Chinese Academy of Medical Sciences". On August 15th, during an on-site visit by a reporter from China News Network, it was discovered that the word "Hebei" had disappeared from the hospital name on the building.

From the perspective of equity changes, the equity of MCC Jixin, one of the organizers of Hebei Hospital, has undergone several changes in a short period of time. On November 24, 2020, when the Hebei Provincial Health Commission approved the establishment of Hebei Hospital, there were also two changes in the absolute controlling shareholder. This kind of operation makes many netizens exclaim "I can't understand". After a series of dazzling operations and twists and turns, a hospital jointly established by a public hospital and a state-owned enterprise has become privately run.

From the perspective of hospital property rights, according to the "Agreement on the Cooperation between the Cancer Hospital of the Chinese Academy of Medical Sciences and MCC Jixin in Establishing Hebei Cancer Hospital of the Chinese Academy of Medical Sciences" obtained by a reporter from China News Network, both parties agree that Hebei Hospital will lease and use MCC Jixin's land, houses, and facilities and pay related fees.

According to other materials, Hebei Hospital and MCC Jixin signed two housing lease contracts in May and August 2022, respectively. MCC Jixin will lease buildings 1 to 7 in the hospital area to Hebei Hospital for use.

Subsequently, MCC Jixin used the housing lease contract signed in May as the basic contract for generating accounts receivable, and Hebei Hospital, as the debtor of accounts receivable, signed a maximum pledge contract for accounts receivable with Langfang Bank, obtaining a maximum debt amount of 2.295 billion yuan. Using similar operations, MCC Jixin may also obtain a maximum debt amount of over one billion yuan from Longjiang Bank.

Lawyer Sun Yun, Senior Partner of Shanghai Randy Law Firm, believes that the relevant terms of the lease agreement clearly state that the ownership and land use rights of the Hebei Hospital, established in cooperation between the Cancer Hospital of the Chinese Academy of Medical Sciences and MCC Jixin, are all under the name of MCC Jixin.

Based on this, some legal professionals have raised questions: Who exactly does "Hebei Chinese Academy of Medical Sciences Cancer Hospital" belong to?

The public expects relevant parties to respond as soon as possible. Recently, reporters from China News Network have repeatedly contacted several relevant leaders of the Cancer Hospital of the Chinese Academy of Medical Sciences regarding the core concerns of public opinion, but the other party has refused to be interviewed or expressed uncertainty. An employee of the Cancer Hospital of the Chinese Academy of Medical Sciences said, "The hospital has clear regulations that no one is allowed to be interviewed without the consent of the dean."