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

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, after 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 prompted over 1,400 complaints to police and the Customs and Excise Department, and more than 2,000 to the city’s consumer watchdog so far.

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 on Tuesday.

“The government will examine whether the existing regulations are adequate, particularly for prepaid consumption, and consider various proposals, including the introduction of a statutory cooling off period, limiting the maximum contract period.”

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