New Delhi, Feb. 17 -- A media investigation in central China has revealed an alleged scam involving several private psychiatric hospitals. These facilities admitted healthy people to misuse the public medical insurance system.

An undercover report by Beijing News found that many patients in institutions in Xiangyang, Hubei province, showed no abnormal behaviour. They received little or no real treatment.

Healthy individuals said they agreed to stay because hospitals had promised free admission and living expenses. Under China's healthcare system, patients usually pay part of their bills. Public insurance covers the rest.

Once admitted, hospitals allegedly used patient identities to create false treatment records and claim insurance mon...