The Beijing Municipal No. 2 Intermediate People's Court sentenced Li Penghui to life imprisonment in the first instance for contracting eight community hospitals in Beijing's Fengtai District and committing medical insurance fraud, defrauding the state of more than 100 million yuan in medical insurance funds.
According to reports from NetEase News and News, Li Penghui used the hospitals he contracted to conspire with others to defraud the state of medical insurance funds by falsely purchasing and selling traditional Chinese medicine decoction pieces. Li Penghui used to be the legal representative of Beijing Jingminkang Investment Management. He and three other co-defendants, including Fan Zongtang, Fan Wenyuan and Li Peirong, were involved in the fraud.
Between 2015 and 2020, they defrauded medical insurance funds by falsifying raw material test reports, production records, and drug batch numbers to sell fake pieces of traditional Chinese medicine to community hospitals controlled by Li Penghui.
The eight community hospitals contracted by Li Penghui are all located in Fengtai District, Beijing, and include community health service stations such as Xinhua Street, Zhenguo Temple, Liuliqiao Nanli, Chengnan Jiayuan, Fengti Times, Wangyuan, and Dichang New District, as well as the Taipingqiao Community Health Service Center. These hospitals are all designated institutions for medical insurance and are managed by Jingminkang.
After the investigation of this case by the Fengtai Branch of the Beijing Municipal Public Security Bureau was concluded, the Fengtai District People's Procuratorate of Beijing Municipality transferred the case for examination and prosecution, and finally the Second Branch of the Beijing Municipal People's Procuratorate filed a public prosecution with the Beijing Second Intermediate People's Court. The testimony of more than 40 witnesses was involved in the course of the trial.
This case reflects the seriousness of health care fraud and the legal sanctions against such crimes.