5 indicted over unlicensed surgeries at Taichung hospital

Taichung, May 13 (CNA) The Taichung District Prosecutors Office on Monday indicted five individuals in a case involving unlicensed medical device vendors allegedly participating in surgical procedures at Taichung Veterans General Hospital (TVGH).

Those indicted were Yang Meng-yin (楊孟寅), director of the hospital's oncology neurosurgery division, Cheng Wen-yu (鄭文郁), director of minimally invasive neurosurgery, and three medical device vendors, according to a prosecutors' statement issued Wednesday.

They are charged with fraud and violations of the Physicians Act.

Prosecutors said Yang and Cheng had undermined medical ethics and violated patients' rights by allowing unlicensed individuals to carry out medical procedures and sought heavy penalties for both physicians.

Meanwhile, the three vendors confessed to the allegations and surrendered all NT$330,000 (US$10,462) in illicit gains, said prosecutors, but they still asked that the trio be given "appropriate" penalties.

The indictment alleged that Yang and Cheng allowed the three vendors to enter operating rooms for 13 surgeries between March 2023 and October 2025 and illegally perform such medical procedures as bone screw implantation, electrocoagulation, and tissue extraction.

Among the surgeries performed were endoscopic spinal fusion operations.

According to prosecutors, the defendants failed to disclose the involvement of unauthorized individuals to patients while charging them high out-of-pocket fees for medical devices and surgical procedures.

They also allegedly applied for national health insurance reimbursement for related medical and surgical expenses despite knowing that procedures performed by unlicensed individuals were not eligible for coverage.

The five defendants allegedly obtained more than NT$1.96 million in illicit gains, according to the indictment.

Prosecutors further alleged that the vendors privately shared part of the proceeds from medical device sales with the two physicians as "public relations fees" to secure continued product use and sales.

The case was referred to prosecutors in January 2026 by the Taichung City Health Bureau.

Investigators reviewed phone records, footage from multiple surgeries, operating schedules, national health insurance reimbursement applications and patients' medical records as part of the investigation.

Also on Wednesday, the Taichung City Health Bureau said Yang and Cheng had been suspended from practicing medicine in accordance with the Physicians Act, while TVGH was fined NT$100,000 for failing to fulfill its supervisory responsibilities under the Medical Care Act.

The two physicians will also be referred to the Physician Disciplinary Committee for allegedly fraudulently applying for reimbursements from the national health insurance system, the bureau said.

Meanwhile, the hospital said in a statement that it respected the judicial process. It added that it has strengthened operating room management, established reporting and disciplinary mechanisms, and enhanced internal controls to safeguard patient safety.

The hospital originally acknowledged in January that physicians had permitted a vendor to enter operating rooms without proper reporting, but said an internal review found no evidence that the vendor participated in operations.

After video footage showed otherwise, however, TVGH convened an emergency management meeting and suspended three doctors involved in the case.