Hospitals with investments exceeding 9 billion suddenly apply for cancellation! There are many doubts about Hebei Hospital | Cancer Hospital of the Chinese Academy of Medical Sciences | Doubts

On August 14, the official account of WeChat on the website of China Central Radio and Television released a piece of news that the President of the Cancer Hospital of the Chinese Academy of Medical Sciences, He Jie, was reported. It said that recently, a report letter involving the Cancer Hospital of the Chinese Academy of Medical Sciences and its President, He Jie, flowed out of the industry. The report letter states that Hejie illegally set up private hospitals, resulting in the loss of state-owned assets. Regarding this matter, some media reporters have called the Cancer Hospital of the Chinese Academy of Medical Sciences and the Hebei Health Commission, but no one has answered the multiple calls.

Less than a week ago, on August 9th, a cancellation notice published in Hebei Youth Daily showed that the "Hebei Chinese Academy of Medical Sciences Cancer Hospital" in Langfang, Hebei planned to apply for cancellation of registration with the organization registration management authority. This day is less than two years away from its registration.

The Hebei hospital that was cancelled under this plan is exactly the private hospital mentioned in the report letter. Subsequently, various doubts about this hospital with an investment of over 9 billion yuan gradually surfaced in a series of media reports.

Why does a state-owned hospital become a private enterprise? Why are non civil enterprises deregistered within less than two years of establishment? I bought my own assets and spent 298 million. Where did the money go? Why should the proton radiation therapy system, which is purchased by state-owned assets and has a high value, be configured in private hospitals?

Pengpai News found that on July 27th this year, the Cancer Hospital of the Chinese Academy of Medical Sciences just held a staff representative conference and passed a resolution on the asset acquisition of the Langfang campus. But as early as March 2022, China Cancer Hospital had launched a recruitment campaign targeting Hebei Hospital with a total size of over 600 people. Before this year's Workers' Congress, the recruitment process had already begun for the second round.

After some operation, will this "private hospital" eventually put on the guise of a public institution?

Built before approval?

The reporter from Pengpai News sorted out the establishment process of Hebei Hospital.

The public news about "Hebei Hospital" originated from a report titled "Langfang Municipal Health Commission Safeguarding the Health of the People" in Langfang Daily on January 10, 2019, which mentioned "accelerating the preliminary work of Langfang Central Hospital and promoting the rapid landing of China Cancer Hospital Langfang Campus."

In the same month, according to public information disclosed by the People's Government of Langfang City, the location of the Langfang Branch of the Beijing Cancer Hospital of the Chinese Academy of Medical Sciences has been determined. On February 2, 2019, the signing ceremony of the Langfang campus of the Cancer Hospital of the Chinese Academy of Medical Sciences was held in Langfang City. Chen Ping, Deputy Secretary of the Langfang Municipal Party Committee and Mayor, and He Jie, President of the Cancer Hospital of the Chinese Academy of Medical Sciences, represented both parties to complete the signing.

On May 13, 2019, the Langfang Economic and Technological Development Zone Management Committee, the Cancer Hospital of the Chinese Academy of Medical Sciences, and China Metallurgical Industry Co., Ltd. signed a tripartite cooperation framework agreement for the Langfang campus project of the Cancer Hospital of the Chinese Academy of Medical Sciences in Beijing.

This tripartite cooperation framework agreement refers to the tripartite cooperation framework agreement signed by the People's Government of Langfang City and the Cancer Hospital of the Chinese Academy of Medical Sciences, as well as the Langfang Development Zone Management Committee and the Cancer Hospital of the Chinese Academy of Medical Sciences, which introduces state-owned enterprises to invest and cooperate in the construction of the Langfang campus.

The content of the tripartite cooperation framework agreement is that the Management Committee of Langfang Economic and Technological Development Zone, as the specific implementation service entity designated by the Langfang Municipal Government, closely cooperates with the Cancer Hospital of the Chinese Academy of Medical Sciences and China Metallurgical Industry Co., Ltd. The Cancer Hospital of the Chinese Academy of Medical Sciences is responsible for providing the planning, design, construction demand plan and hospital operation of this project in accordance with the standards of Class A tertiary hospitals. China Metallurgical Industry Co., Ltd. is responsible for establishing a project company and using the project company as the project investment and construction entity, responsible for all capital investment and engineering construction in the public and non public medical hospital areas.

In 2020, the project began construction and landed. According to the government information disclosure of the People's Government of Hebei Province, on January 21, the Langfang campus project of the Cancer Hospital of the Chinese Academy of Medical Sciences officially began construction. According to reports, the Langfang campus project of the Cancer Hospital of the Chinese Academy of Medical Sciences is positioned as a Grade III Grade A tumor hospital, with a total investment of 9.46 billion yuan, of which 8.76 billion yuan is invested in the Langfang campus of the Cancer Hospital and 700 million yuan is invested in the National Cancer Center. A total of 2600 beds were designed.

It is worth noting that according to the official approval of the Hebei Provincial Health Commission, the construction of the Cancer Hospital of the Chinese Academy of Sciences was not officially approved until November 24, 2020.

This is also a procedural issue mentioned in many reports regarding the construction of Hebei hospitals before approval. In response to this doubt, reporters have also called the Hebei Provincial Health Commission, but the phone has not been answered.

Equity Doubts

In the above approval, the equity structure of "Hebei Hospital" was exposed, which also involved a series of doubts such as "fake state-owned enterprises".

The approval mentioned that "it is agreed that the Cancer Hospital of the Chinese Academy of Medical Sciences and MCC Jixin Health Industry Co., Ltd. will jointly establish the Hebei Hospital of the Cancer Hospital of the Chinese Academy of Medical Sciences. The hospital will be classified as a third level specialized hospital, with a non-profit nature and serving the society."

Firstly, according to the aforementioned tripartite agreement, Hebei Hospital was initially established by the Langfang Economic and Technological Development Zone Management Committee, the Cancer Hospital of the Chinese Academy of Medical Sciences, and China Metallurgical Industry Co., Ltd. However, the approval content shows that the Langfang Economic and Technological Development Zone Management Committee did not appear among them.

The project party, MCC Jixin, was a new company established by China Metallurgical Industry Corporation Limited on September 23, 2019, in accordance with the agreement. China Metallurgical Industry Corporation assigned its subsidiaries, MCC International, and Jilin Trust, to jointly establish MCC Jixin Health Industry Co., Ltd. MCC Jixin is listed as a state-owned enterprise. As the project company, it will jointly establish a hospital with the Cancer Hospital.

According to Qichacha, the controlling shareholder of MCC Jixin is Kanghexin Health and Medical Management Co., Ltd., with a capital injection of 477 million yuan and a shareholding of 99.58%. The other shareholder of MCC Jixin is MCC International, a wholly-owned subsidiary of MCC, but only holds 0.42% of the shares.

Kanghexin, the major shareholder of MCC Jixin, is a subsidiary of Jilin Trust, a state-owned financial enterprise established on November 9, 2020. Kanghexin is listed as a state-owned enterprise, with Chen Ying as the current legal representative and Fu Liewu as the initial legal representative.

In the following series of complex equity operations, a special private enterprise is involved.

On November 16, 2020, Kanghexin fully acquired Beijing Kangyang Architectural Design Consulting Co., Ltd., a sole proprietorship in Beijing. The registered capital of the company is 5 million yuan, and the legal representative, Fu Hongying, holds 100% equity. There is also a supervisor and executive, who is the legal representative of Kanghexin, Fu Liewu. Subsequently, Fu Liewu also served as the legal representative of MCC Jixin.

On November 24, 2020, on the day when the Health Commission of Hebei Province approved the joint establishment of Cancer Hospital and MCC Jixin as Hebei Hospital of the Chinese Academy of Medical Sciences, Beijing Health Care invested 298 million yuan to acquire all the shares of MCC Jixin held by Jilin Trust.

On the same day, Kanghexin invested 298 million yuan to acquire all the shares of MCC Jixin held by Beijing Kangyang, holding 99.33% of the equity of MCC Jixin. Kanghexin became the absolute controlling shareholder of MCC Jixin.

Strangely, on August 6, 2021, Kanghexin sold its equity to Fu Hongying, the former sole shareholder of Beijing Kangyang, again in less than a year, and Beijing Kangyang became a sole proprietorship.

On August 18, 2021, Fu Liewu withdrew from Kanghexin shortly after Kanghexin sold its equity back to Fu Hongying. On August 3, 2023, when Hebei Hospital proposed cancellation, the legal representative of MCC Jixin was also changed from Fu Liewu to Sun Shanxiu.

There are many doubts here.

Firstly, what role does Beijing Kangyang play in the process? The original controlling shareholder of MCC Jixin was Jilin Trust, and the controlling shareholder of Kanghexin is also Jilin Trust. Under the same system, is it not good to directly transfer the equity of the enterprise? Who does Beijing Health Care belong to? What role does Fu Liewu play in it? If he is a state-owned enterprise, why does he serve as a supervisor in a private company? If he is a senior executive of a private enterprise, why does he also serve as the legal representative of a state-owned enterprise?

Secondly, according to a report from China News Agency, the organizational structure disclosed on Jilin Trust's official website did not include Kanghexin as a subsidiary, and the name of Kanghexin was also not found in Jilin Trust's 2022 annual report. Jilin Trust staff said in an interview with China News Service that they have "never heard of" this subsidiary.

According to the information on Qichacha, the registered capital source of Kanghexin is unknown, and the number of social security participants is 0. So, whose company is Kanghexin?

Thirdly, according to the relevant regulations on equity transfer of state-owned enterprises, their equity transfer not only needs to be carried out in accordance with legal procedures, including compliance with the company's articles of association and relevant laws and regulations, but also needs to be approved by higher-level departments. How did Kanghexin and MCC Jixin achieve two shareholder changes within a day?

Pengpai News has 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 Provincial 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.

Non civil enterprises

It is worth mentioning that after media coverage of the controversy over "fake state-owned enterprises", on August 3rd, the legal representative of MCC Jixin changed from Fu Liewu to Sun Xiushan. On August 9th, local media in Hebei announced that they plan to apply for deregistration with the organization registration management authority. This day is less than two years away from its registration.

Why can Hebei Hospital be deregistered? This also involves the operation of private enterprises in Hebei hospitals.

On November 24, 2020, when the Health Commission of Hebei Province approved the establishment of the Cancer Hospital of the Chinese Academy of Medical Sciences, Hebei Hospital mentioned that Hebei Hospital is a private non enterprise unit.

According to the Provisional Regulations on the Registration and Management of Non enterprise Private Units, non enterprise private 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.

A senior lawyer told a reporter from Pengpai News, "Non commercial enterprises themselves will enjoy various support policies, while the land of non-profit medical institutions is allocated, and medical service income obtained according to national regulations is exempt from various taxes. In addition, they can also enjoy the same subsidy policies as public hospitals.".

The question raised here is, as the founding parties of the Cancer Hospital of the Chinese Academy of Medical Sciences and MCC Jixin are both state-owned enterprises, how can their state-owned investments be transformed into private and non private enterprises? At the beginning of its establishment, Hebei Hospital enjoyed various preferential policies for private enterprises, but now it has been cancelled. Who will bear the losses caused? How will the billions of yuan of assets that have already been invested be disposed of? Will it involve the loss of state-owned assets?

Surname Gong, surname Min?

Although registered as a private hospital, the actual operation of Hebei Hospital seems to have always been carried out by the Cancer Hospital of the Chinese Academy of Medical Sciences.

On July 29, the official account of the Cancer Hospital of the Chinese Academy of Medical Sciences released the article "The First and Second Workers' Congress of the First Workers' Congress of the Center and the Hospital was held grandly", which showed that Secretary Zhang Yong of the hospital announced the voting results of major issues of the hospital. On July 27th, the first and second employee representative meetings of the Cancer Hospital of the Chinese Academy of Medical Sciences, National Cancer Center, were held. At the meeting, the merger and acquisition of assets in the hospital's Langfang campus were voted on and approved.

Dean Hejie stated that since its establishment in 1958, the Cancer Hospital has undergone two historical leaps from Ritan to Longtan Lake. The construction of the Langfang campus has brought the hospital the opportunity for a third leap.

Pengpai News found a recruitment notice posted on the official website of China Cancer Hospital in March 2022, which showed that as early as a year and a half ago, China Cancer Hospital had started a large-scale recruitment for personnel in Hebei Hospital.

This recruitment notice states that Hebei Cancer Hospital of the Chinese Academy of Medical Sciences is located in Langfang Economic and Technological Development Zone, Hebei Province, more than 40 kilometers away from Beijing Daxing International Airport and Beijing General Hospital, approximately a 40 minute drive away. Hebei Hospital is an important measure taken by the National Cancer Center/Cancer Hospital of the Chinese Academy of Medical Sciences to implement the coordinated development of medical and health services in the Beijing Tianjin Hebei region, alleviate non capital functions, and build a national high-level proton radiotherapy center. It was approved by the Hebei Provincial Health Commission in 2020 and is a key livelihood project in Hebei Province. It is a non-profit tertiary cancer specialty hospital.

It is worth pondering that the introduction omitted the four words "non-governmental office" before non-profit in the approval. From the introduction and planning, it can be seen that the hospital to be recruited should be the Hebei Hospital mentioned earlier.

Webpage Screenshot

According to recruitment details, the recruitment scale exceeded 600 people, involving 38 departments and departments, with the nursing department alone recruiting up to 320 nursing staff.

Screenshots of some recruitment requirements

On June 7th, the official website of the Cancer Hospital of the Chinese Academy of Medical Sciences released the second batch of recruitment information. In the recruitment announcement, the description of Hebei Hospital changed to "Langfang Campus" established by the Chinese Cancer Hospital.

The announcement states that in order to implement the national strategy of coordinated development in the Beijing Tianjin Hebei region, alleviate non capital functions, build a high-level national medical center, and create a national proton radiotherapy center, the Cancer Hospital of the Chinese Academy of Medical Sciences has established a Langfang campus in Langfang Economic and Technological Development Zone, Hebei. The Beijing General Hospital and Langfang Hospital adopt an integrated management model of "one hospital, two districts", achieving homogeneity and homogeneity in medical service quality and information, and implementing unified management in personnel training and deployment.

On August 17th, when Pengpai News called, the Personnel Department of the Cancer Hospital of the Chinese Academy of Medical Sciences stated that "this recruitment is mainly for Langfang Hospital.".

The Chinese Cancer Hospital provides more than just personnel for this "private hospital".

According to a report from China News Network, reports from Hebei Hospital all 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.

This device belongs to Class A national planning and configuration of large-scale medical equipment, and is managed by the National Health Commission.

But there are a total of 2 such devices at the Cancer Hospital of the Chinese Academy of Medical Sciences, one in Shenzhen Hospital and the other in Hebei Hospital. The nature of this hospital is private. China News Network questions whether the proton radiotherapy system purchased by a huge amount of state-owned assets is compliant when placed in private hospitals?

For this reason, officials from relevant departments and bureaus of the Ministry of Finance revealed to China News Network reporters that 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.

On August 15th, according to a report from China News Agency, during an on-site visit to a hospital in Hebei, it was found that the word "Hebei" in the name of the hospital has disappeared, leaving only "Cancer Hospital of the Chinese Academy of Medical Sciences".

On August 15th, the reporter visited the Cancer Hospital of the Chinese Academy of Medical Sciences in Hebei and found that the word "Hebei" had disappeared.

The report states 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.