(Yicai) Nov. 28 -- China’s National Healthcare Security Administration has disclosed details of a bribery scheme involving a distributor of products made by global medical technology giant Medtronic, with the amount involved reaching CNY14 million (USD2 million).

From 2013 to 2020, Ma, the actual controller of Shanghai-based Yike Trading -- along with three affiliated entities -- paid cash kickbacks to three senior medical managers at Second Affiliated Hospital of Hebei Medical University, according to disclosures on China Judgments Online. The arrangement set kickbacks at CNY5,000 (USD706) per Medtronic coronary stent, while rebates for balloons differed by price, at either CNY800 (USD113) or CNY1,000.

Three of the four companies implicated in the case have since been deregistered. Ma maintained the illicit benefit network for seven years by frequently changing operating entities, and after the case surfaced, he submitted CNY2 million (USD282,588) in illegal proceeds to the supervisory authorities.

In July 2025, the Wei County People’s Court in Hebei province fined Yike Trading CNY300,000 (USD42,389) for the crime of bribery by an organization. Ma received a prison sentence of one year and 10 months and was fined CNY200,000.

Judicial penalties have been imposed, but the inflated pricing uncovered in the case remains an issue, the NHSA said, noting that unchecked overpricing will continue to harm the rights and interests of patients and the medical insurance fund.

The NHSA established a credit evaluation system for price procurement in 2020 to assess companies involved in bribery in pharmaceutical and device sales or other serious misconduct. Firms with significant issues are assigned untrustworthiness ratings and may face restrictions such as limits on online listing and distribution.

Looking ahead, the regulator said it will guide local medical insurance bureaus to apply the rating system in accordance with regulations, press companies to promptly correct untrustworthy behavior, and enforce measures to safeguard the security of medical insurance funds.

Editor: Emmi Laine