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Hong Kong to review regulations after abrupt closure of Alliance Medical Group

City leader vows to better protect consumer rights by considering statutory cooling-off period or limiting duration of healthcare contracts

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Alliance Medical Group, which ran two clinics in Tsim Sha Tsui and Sha Tin, has not officially announced its closure, but its Facebook and Instagram accounts are no longer available. Photo: Nora Tam

Hong Kong’s leader has vowed to better protect consumer rights by studying the possibility of introducing a statutory cooling-off period or limiting the maximum duration of prepaid healthcare contracts following the abrupt closure of a medical group.

Chief Executive John Lee Ka-chiu on Tuesday also pledged to pursue legal options and hold to account the relevant people behind Alliance Medical Group, whose sudden closure has prompted 1,607 complaints to police and the Customs and Excise Department, including 46 from non-locals as of 5pm on Tuesday.

As of Tuesday, the city’s consumer watchdog had received 773 complaints concerning the group’s closure, with the amount involved rising to nearly HK$4.3 million (US$554,800).

The government set up an interdepartmental task force to handle the matter last week after customers discovered the group’s two clinics in Tsim Sha Tsui and Sha Tin had closed without warning. The company offered prepaid vaccination packages for children, among other services.

Lee said his administration would review current regulations in light of the incident.

“Currently, the Private Healthcare Facilities Ordinance regulates the facilities and safety of healthcare services, while prepaid consumption is governed by contracts,” he said ahead of his weekly meeting with advisers in the Executive Council.

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