Recently, a high-priced rehabilitation scam in Jiangxi, China has been exposed. The so-called “high-end rehabilitation center” in Lushan Xihai has long been carrying out systematic fraud under the guise of “liver and kidney care” and “stem cell therapy,” selling ordinary vitamin C as “high-end imported drugs,” with the amount involved reaching up to 530 million Chinese yuan, affecting a total of 3,283 victims.
According to reports from mainland China’s official media such as “CCTV News” and “Sina Finance,” the Lushan Xihai Rehabilitation Hospital in Jiangxi claimed to have “international advanced equipment” and an “authoritative team of experts,” attracting a large number of middle-aged and elderly people as well as chronic disease patients through low-price trials, high-end packaging, and emotional marketing. However, investigations revealed that its core “treatment items” lacked medical basis, and the so-called “imported high-end drugs” like “red earthworm enzyme” and “metal sulfur protein” were actually common drugs such as vitamin C and thioctic acid, being sold at prices ranging from tens of thousands to hundreds of thousands of yuan after simply changing the labels.
Ms. Chen from Danyang, Jiangsu, played a key role in exposing the high-priced rehabilitation scam. In December 2021, she was introduced to Wang who claimed to have access to medical resources. He recommended a rehabilitation hospital in Lushan Xihai, Jiangxi, to her, claiming that the institution had “advanced equipment and authoritative experts,” offering a high-end health check package priced at 68,000 yuan for just 5,980 yuan, including free travel and accommodation.
Accompanied by Wang, Ms. Chen went to the hospital for a check-up. The so-called “experts” interpreting the report mentioned problems such as “brain cell shrinkage” and “insufficient blood supply to the intestines,” recommending immediate “stem cell therapy.” Wang quoted a price of 520,000 yuan for a single treatment, promising four free follow-up consultations within a year, with all expenses for food, accommodation, and travel covered. Ms. Chen made the payment on the spot.
One month later, when Ms. Chen and her husband returned for a follow-up, the hospital once again claimed various abnormalities in her husband’s heart, liver, and other indicators, recommending “stem cell therapy” and “liver and kidney care” projects. Induced by the offer of “recharge 3 million yuan and get 3 million yuan,” the couple immediately recharged 3 million yuan. In June 2022, during another check-up, the hospital persuaded them to continue treatment citing “low blood albumin,” “gynecological issues,” and the need for “liver, kidney, and prostate care,” leading the couple to recharge another 1 million yuan in three installments.
Within just half a year, Ms. Chen and her husband had accumulated over 4.5 million yuan in expenses at the hospital. Only after consulting legitimate medical experts did Ms. Chen realize the lack of scientific basis in the so-called “stem cells curing all diseases” and that the hospital did not have the relevant medical qualifications. Her request for a refund of the remaining balance was rejected, prompting her to report the case to the Danyang police in Jiangsu, thus uncovering the scam.
Subsequently, the police found a large number of small bottles labeled with “red earthworm enzyme,” “metal sulfur protein,” PF1, PF2, etc., at the hospital. Upon examination, these so-called “anti-aging” and “care” drugs were found to be common medications such as vitamin C, thioctic acid, and glutathione.
The prosecution revealed that the hospital director purchased ordinary drugs and rebranded them all as high-end imported drugs after packaging them differently. After being “rebranded” and repackaged, the cost of the “care items,” which cost around a hundred yuan, was sold for tens of thousands of yuan, with the highest-priced “cellular products” package reaching up to 1.28 million yuan.
Investigations also found that most of the so-called “authoritative experts” at the hospital lacked medical practice qualifications, having only middle school or technical secondary education backgrounds, with some previously working in the beauty or sales industries, having no relevant medical experience.
Operating in a corporate mode, the hospital set up departments for marketing, health check-ups, nursing, etc., and developed its customer base nationwide through an agent system. The hospital implemented fraud through more than 160 primary agents, sharing the fraud proceeds proportionally between the agents and the company.
Official data shows that the high-priced rehabilitation scam in Jiangxi has affected 3,283 victims, with fraud amounts totaling 530 million Chinese yuan.