Recently, a “collective dismissal contract notice” signed by the Su Hong Elderly Disease Hospital in Jiangsu Province has been widely circulated online, sparking social concerns. The notice reveals that the hospital’s total debt has reached a staggering 44 million yuan (RMB), rendering it unable to sustain normal operations, leading to the immediate dismissal of all staff. Local authorities have confirmed the situation, with the arbitration court intervening to handle the matter.
As of the end of 2024, the hospital’s total debt stood at 39.9 million yuan, but with added expenses such as wages, social security, medication, and material costs from January to April 2025, the debt has escalated to 44 million yuan. Due to insufficient income to maintain regular operations, the hospital made the decision to dismiss all personnel immediately, assuring that unpaid wages and social security contributions will be covered by the hospital.
The circulation of this notice online has sparked discussions and debates among the public.
According to a report by Da Wan News, Nurse Zhang, who has worked at the hospital for many years, confirmed the authenticity of the notice. She mentioned that on the afternoon of April 30th, employees were shocked to receive this notice in their work group chat. Prior to this, the hospital had withheld salaries for several months, and there were outstanding social security payments. With around one to two hundred staff members at the hospital, dozens have resigned following the notice. Zhang and other colleagues who do not agree with the proposed solution have raised concerns to the labor department.
Currently, the hospital has not completely shut down, with some staff still on duty. However, the public 24-hour emergency hotline and appointment phone numbers are unanswered, leading Zhang to speculate that it might be related to an office relocation. The Health Bureau of Su Hong County has stated they are “unclear” or have “no comment” on the matter, while the local Human Resources Bureau confirmed the involvement of the arbitration court.
At noon on June 17th, a doctor from the hospital mentioned, “Part of the staff has been dismissed, but the hospital is still in operation.” Another doctor also confirmed that the hospital is operating.
Public records indicate that the Su Hong Elderly Disease Hospital was established in July 2001 and is the first privatized non-profit medical institution in Su Hong County following restructuring.
Information from the Enterprise Check Platform shows that the hospital’s legal representative, Mr. Zhang, is involved in over a hundred legal cases, with a significant 65% as a defendant, primarily related to medical liability disputes accounting for 33% of the cases. The hospital has also faced multiple administrative penalties for various violations, including using expired medications, incomplete medical records, unauthorized prescriptions of restricted antibiotics by unqualified doctors, and overcharging nursing fees. Additionally, the hospital has a history of tax arrears and has been listed as a judgment debtor multiple times, with the legal representative, Mr. Zhang, subject to high-consumption restrictions.
Regarding the collective dismissal at Su Hong Elderly Disease Hospital, Lawyer Zhou Zhaocheng from Beijing Anjian Law Firm pointed out that for economic layoffs, a 30-day advance notice to the union or all employees is required to explain the situation and seek their opinions. The layoff plan must also be reported to the labor administrative department. The hospital’s immediate announcement of mass dismissal without following these procedures is deemed illegal.
The lawyer advises that in such situations, employees can file complaints with the local labor supervision team of the labor department or apply for arbitration with the Labor Dispute Arbitration Committee. If the hospital makes subsequent adjustments, such as rehiring some employees or changing labor conditions, staff can negotiate new terms and job responsibilities with the hospital.