$1.3-bln hospital shuts two years after launch

(ECNS) -- The Hebei Cancer Hospital of the Chinese Academy of Medical Sciences, self-proclaimed as the "branch of largest Asian cancer hospital," has recently announced an unexpected application for deregistration.

The hospital, which was approved for establishment on November 24, 2020, and declared its intention to deregister on August 9, 2023, in less than two years, has raised questions.

The hospital, categorized as a "private non-enterprise non-profit organization," with a registered capital of 2 million yuan, followed an abnormal establishment process.

It took less than a year from signing an agreement to commencing construction. However, it was only after 10 months of construction that the Health Commission of Hebei Province approved its establishment.

In February 2019, the Langfang Municipal Government signed a strategic cooperation agreement with the Cancer Hospital of the Chinese Academy of Medical Sciences to collaboratively build a branch of the hospital in north China’s Hebei Province, according to the government website.

After about three months, the Langfang Economic and Technological Development Zone Management Committee, the Cancer Hospital of Chinese Academy of Medical Sciences, and Metallurgical Corporation of China Limited (referred to as "China MCC") signed a framework agreement for cooperation in Beijing.

The Langfang government website shows that on January 21, 2020, the branch hospital had started construction. At the time, media reports stated that total investment in the hospital had reached 9.46 billion yuan (about $1.31 billion).

But it wasn't until November 24, 2020, that the Health Commission of Hebei Province approved its establishment of the branch hospital.

Moreover, it's worth noting that in the government statement, the establishment parties of the branch hospital did not include the Langfang Economic and Technological Development Zone Management Committee, which had been part of the initial agreement. Additionally, China MCC, one of the original contracting parties, was replaced by China MCC Ji Xin in the process.

However, China News Network received a report in July 2023 alleging that China MCC Ji Xin may be a "fake state-owned enterprise."

According to the business registration information, China MCC Ji Xin's actual controlling entity is the Jilin Provincial Department of Finance, which would classify it as a state-owned enterprise.

But after verification, it has been found that the source of registered capital for Kanghexin, the controlling shareholder of China MCC Ji Xin, is unclear. The number of employees covered by social security is zero, and there are doubts about changes in equity. In the business registration information of Kanghexin, the controlling shareholder is listed as Jilin Trust, but there is no mention of Kanghexin in its official records. Employees of Jilin Trust have stated that they have "never heard of" this subsidiary.

Legal experts have indicated that based on the existing information, the state-owned enterprise status of Kanghexin and its 99.58 percent ownership of China MCC Ji Xin is indeed questionable.

Furthermore, if China MCC Ji Xin is indeed a "state-owned enterprise," then the question arises as to why it would collaborate with a public hospital to establish a private equivalent.

Another point of concern is the name of the hospital. On various government websites and media reports, the hospital's name has undergone several variations. It was initially referred to as "Branch Cancer Hospital of the Chinese Academy of Medical Sciences" or "Langfang branch of Cancer Hospital of the Chinese Academy of Medical Sciences”

But the name approved by the government was "Hebei Hospital of Cancer Hospital of Chinese Academy of Medical Sciences" However, the name registered in the civil affairs system is "Hebei Cancer Hospital of Chinese Academy of Medical Sciences".

China News Network have separately sent letters or made calls for interviews to relevant parties, including Jilin Trust, Jilin Provincial Department of Finance, Health Commission of Hebei Province, Civil Affairs Department of Hebei Province, China MCC, Metallurgical Corporation of China Limited

and the Cancer Hospital of Chinese Academy of Medical Sciences ,in order to verify the relevant information. However, as of the time of writing, no responses have been received.

It's worth noting that in July, China News Network found the mention of "Hebei Hospital" on the official website of the Cancer Hospital of Chinese Academy of Medical Sciences. However, the associated link was inactive. Upon further investigation, the mention of "Hebei Hospital" has now disappeared from their official website.

Zong Haichao, senior lawyer of Beijing Gaomoke Law Firm, told China News Network that the application for deregistration indirectly indicates that there may have been issues in the establishment, approval, investment, and operational processes of the project. These issues might not be easily rectified or improved, thus leading to deregistration.