AstraZeneca China Employees Charged with Insurance Fraud

AstraZeneca’s Chinese operation is under intense scrutiny by the National Healthcare Security Administration of China over concerns about suspected medical insurance fraud perpetrated by company employees.

According to a statement from China’s NHSA, AstraZeneca staff members are suspected of tampering with the genetic testing results of cancer patients in order to defraud medical insurance funds. Following an investigation conducted by the Chinese government, several AstraZeneca employees have been arrested. The government report did not detail the fraud, nor did it provide additional information as to the goal of the perpetrators.

AstraZeneca China, the company’s business operations in that country, confirmed the arrest of the employees. In a statement issued over the weekend, AstraZeneca China said it conducted its own internal compliance investigation that revealed “a few of its employees in Shenzhen city” had “altered or participated in altering patients’ testing reports.” By altering those reports, the employees were committing medical insurance fraud, the company said.

AstraZeneca said it took “serious disciplinary action” against the employees and is cooperating with the government investigation.

The Chinese government has demanded that AstraZeneca “close loopholes” in its marketing supervision, as well as conduct in-house training to ensure that employees are abiding by the local laws.

Concerns about the insurance fraud were first raised at the end of 2021. AstraZeneca, the NHSA and the Ministry of Public Security held a joint meeting regarding the investigation. That meeting prompted AstraZeneca’s own internal investigation. The company said it is committed to ensuring compliance and also strengthening management oversight. Also, AstraZeneca said it will comply with the Chinese government’s request to conduct training programs aimed at ensuring employees follow local laws.

“AstraZeneca China will continue to conduct targeted internal self-inspections and monitor activities to prevent any misuse of public insurance funds or other noncompliance with law or company policy,” the company said in a statement. “At the same time, AstraZeneca China will continue strengthening its culture of compliance, its compliance training as well as self-inspection systems and monitoring activities to promote sustainable business development in compliance with laws and regulations.”

Source: BioSpace

AstraZeneca added that it is committed to serving the Chinese market in order to provide more innovative therapeutics to Chinese patients.

The NHSA said the government will now initiate a campaign against tampering with genetic test results in order to defraud medical insurance funds. Ahead of any findings, the government urged those who may be involved in such fraud to “immediately surrender to the local medical insurance department and public security department, and strive for leniency.”

AstraZeneca has had a presence in China since 1993. Three years ago, the company announced plans to significantly expand its footprint in China with a global R&D center in Shanghai and a $1 billion fund that was aimed at supporting the healthcare sector in that country. Additionally, the company also announced plans for an artificial intelligence (AI) Innovation Center, which is also located in Shanghai.