Recently, multiple hospitals in Hunan’s Chenzhou were exposed for having unknown sources of liquid oxygen, sparking concerns about the safety of medical oxygen. Industry insiders have emphasized the need to test the purity of oxygen supplied to hospitals and thoroughly investigate material balances.
According to a report by Hunan TV’s urban channel on September 11, in July this year, the Chenzhou Market Supervision Bureau found that several public hospitals in Jiahe County and Linwu County were using liquid oxygen with unknown sources. A copy of the authorization provided by Yongzhou Lanshan County Liansheng Gas Co., Ltd. indicated that the medical oxygen production enterprise involved does not exist.
The stamp on the authorization document was marked as “Guangxi Liuzhou Iron and Steel Group Co., Ltd. Gas Company,” indicating that Liansheng Gas Co., Ltd. (referred to as Liansheng Company) was responsible for delivering medical liquid oxygen to medical institutions in Chenzhou, handling payment settlements, and after-sales services. The validity period was from May 2023 to May 2026.
However, both the Guangxi Zhuang Autonomous Region Drug Supervision Administration’s Liuzhou Branch and the Qichacha database show that this company does not exist. Market supervision personnel from Chenzhou City believe that “this company (Guangxi Liuzhou Iron and Steel Group Gas Company) did not provide a business license. It needs a business license and oxygen production permit. If it cannot be produced, it has no right to delegate authority.”
Public information indicates that Liugang Group was established in 1958, primarily in the steel industry, with diversified businesses. Guangxi Liugang Gas Co., Ltd. is an important subsidiary of Liugang Group, established in 2023, formerly known as Liugang Gas Factory (established in 1969). They supply sufficient high-quality cryogenic liquids to major hospitals and distributors for the majority of hospitals in Guangxi.
An employee from Liugang Group informed Upstream News that indeed, there is a gas company among its subsidiaries, and the seal on the liquid oxygen authorization may belong to this internal company.
Reports on the official website of the Guangxi Liuzhou Science and Technology Bureau indicate the presence of the “Liugang Group Gas Company” in the company’s internal structure. However, this company is not registered legally.
According to Qixinbao, Guangxi Liugang Gas Co., Ltd. was established on June 25, 2023. This means that based on the authorization period stated in Liansheng Company’s authorization document (from May 25, 2023), this gas company was already conducting business before proper registration.
The pharmaceutical supervision department in Guangxi explained that Guangxi Liuzhou Iron and Steel Group is a large steel refining enterprise that requires a large amount of oxygen in the steel refinement process. Therefore, they qualify for industrial and medical oxygen production. However, to sell externally, they must commission authorization under the name of Guangxi Liuzhou Iron and Steel Group.
Investigative reporters from mainland China also found that in terms of the purchase quantity of liquid oxygen (approximately one to two trucks per month with no loss), without any losses, just enough to meet the needs of the Chenzhou area. However, Liansheng Gas Co., Ltd. from Lanshan County also supplied oxygen to several hospitals in Yongzhou.
On September 23, staff from the Chenzhou Market Supervision Bureau informed the media that further verification and investigation are currently underway.
A local industry insider in Hunan, Mr. Wang, told reporters from Dajiyuan that from the perspective of pharmaceutical management, this company is not registered, so how can it be authorized to sell medicine? It raises questions about the legality of the authorization document. He believes that Liansheng Company must have cut corners to obtain this authorization.
Yongzhou Lanshan County Liansheng Gas Co., Ltd. is a gas production enterprise that has obtained a drug production license for gaseous medical oxygen. With authorization from an upstream production enterprise, they can distribute liquid oxygen. One liter of liquid oxygen can be converted into 800 liters of gaseous oxygen. Clearly, the distribution of liquid oxygen is more economical. However, if the source is unknown for medical use, there is a significant safety risk of containing excessive industrial impurities like carbon monoxide and methane.
Jiahe County People’s Hospital stated that due to the lower delivery price, after Liansheng Gas Co., Ltd. provided the authorization, they requested to retain the manufacturer’s inspection reports for each batch. As the contract has not expired, they currently have no intention to change suppliers.
Regarding the issue of unknown sources of liquid oxygen, Mr. Wang believes that while the source of liquid oxygen may seem clear on the surface, there could be material imbalances. For example, if you received 10 bottles of mineral water, you should only sell 10 bottles; the inflow and outflow should match. But if you sold 12 bottles, that would be inappropriate. The surplus raises doubts about the source.
Reporters from Dajiyuan repeatedly attempted to contact Wu Mengyun, the legal representative of Liansheng Gas Co., Ltd., but received no response.
As early as 14 years ago, in 2010, three hospitals in Chenzhou, including the Children’s Hospital, were exposed for using industrial oxygen instead of medical oxygen for patients, leading to eight individuals being reported and investigated.
Mr. Wang explained that there is a significant price difference between industrial oxygen and medical oxygen, with medical oxygen being much more expensive, sometimes doubling or even quadrupling in price. The quality of medical oxygen is regulated by national standards.
He further mentioned that the purity of oxygen differs between medical and industrial oxygen. Industrial oxygen contains harmful gases such as carbon monoxide and methane above standard levels, making it unsuitable for medical use.
Having been involved in liquid oxygen distribution for many years, Mr. Wang emphasized the importance of having specially designated transport vehicles for raw materials and personal oversight without third-party commissions. Strict management and full compliance are necessary if the manufacturer communicates the delivery. Proper authorization and regulations are essential.
He emphasized that this is a significant issue, involving multiple provinces. As an industry expert, they are also monitoring the situation and waiting for official explanations. They hope for a thorough investigation to trace the origins. Only those familiar with the medical oxygen management process can identify the issues.
Firstly, how much did Guangxi Liugang sell to Liansheng Company? During the authorization period, how much did they sell under the name of Guangxi Liugang? The total volume of medical oxygen sold in Guangxi and by them needs to be matched.
Secondly, concerning material balances, how much was purchased and sold, and is there any falsification? This requires a deeper investigation and examination. This company is in Yongzhou, supplying local hospitals there, making this situation complex and involving multiple cities, warranting an investigation by local authorities or the provincial government.
Lastly, oxygen distributed to hospitals needs to undergo random checks. Is the purity adequate? Does it meet medical-grade standards? Hospitals should retain specific batch numbers for scrutiny and publicize reports.