In China, the economy is facing a downturn which is having a ripple effect on various industries, leading to a significant number of hospitals going bankrupt and closing down. According to research, in 2024, over 500 hospitals, including public ones, shut their doors. The latest news reveals that a hospital in Ruichang, Jiangxi Province, with a history of more than 50 years, has faced closure, forcing patients to transfer to other facilities and medical staff to seek alternative livelihoods.
Amidst recent reports circulating online, an announcement indicated that Ruichang 6214 Hospital in Jiangxi Province is unable to sustain normal operations due to severe losses. After gaining unanimous approval from all shareholders, and informing the relevant authorities and registration agencies, the hospital officially ceased operations on February 27th, with the announcement dated February 24th. The hospital, well-known locally, has a legacy of more than 50 years.
On February 27th, a medical staff member who had worked at the hospital for a decade confirmed the authenticity of the announcement, stating that the hospital had indeed stopped operating. Patients had to be transferred to other facilities, and the medical staff were left to find new paths for themselves.
Expressing deep attachment to the hospital, the medical staff member mentioned that there were over 60 employees at the hospital, all hoping for its revival, not just for the sake of employment. As a long-time employee, the news of the hospital closing down was difficult to accept for her emotionally.
Another staff member mentioned that the hospital had been operating at a loss and officially closed on the 27th of February. Some employees were laid off, while others sought new opportunities elsewhere, and patients had already been transferred. The hospital had a strong reputation, with patients even traveling from neighboring provinces for treatment.
Officials from the Ruichang City Health Committee acknowledged the situation, confirming that the privately-owned hospital, in operation for quite some time, had indeed ceased operations due to a lack of patients.
The official website of Ruichang 6214 Hospital stated that the hospital was established in 1970 as a comprehensive secondary-level hospital offering medical, preventive, healthcare, rehabilitation, emergency, long-term care, and community services. It served as a designated hospital for urban and rural residents’ medical insurance and employee social security. In 2017, the hospital underwent a major renovation, and in March 2018, a new eldercare facility, Ruichang Medical and Nursing Home, was opened.
In the post-pandemic era, China’s economic recovery has been challenging, with various economic indicators showing a downward trend, affecting industries across the board, including the healthcare sector.
Data released by the Chinese medical exchange platform, Xinglin Yuan, indicated that in 2024, over 500 hospitals in China closed down, with a majority being private hospitals.
An article published on January 5th by the magazine “Sanlian Life Weekly” on its WeChat official account mentioned that in 2024, there were over 1200 records related to hospital bankruptcies on the national corporate bankruptcy and reorganization case information website, a significant increase compared to over 800 records in 2023 and 500 in 2022.