China Bans Medical Institutions from Offering Funeral Services to Combat Abuses

New Regulations Issued to Curb Funeral Sector Abuses

China's National Health Commission (NHC), in conjunction with five other government departments, announced new regulations on January 12, 2026, specifically prohibiting medical institutions from offering funeral services. This move is a direct response to widespread concerns over corruption, misconduct, and exorbitant fees that have plagued the funeral industry. The regulations are part of a broader set of revisions to funeral and interment services promulgated by the State Council, which are set to take effect on March 30, 2026.

Strict Prohibitions for Medical Institutions

Under the newly issued guidelines, medical institutions face a comprehensive ban on involvement in funeral-related activities. Key prohibitions include:

• Offering funeral services directly.
• Displaying or selling funeral-related products on their premises.
• Outsourcing morgue operations or introducing third parties to run hospital morgues.
• Accepting or storing bodies from outside the institution.
• Using ambulances or non-emergency medical vehicles for the transportation of remains.
• Contacting funeral homes on behalf of bereaved families, or recommending, inducing, or forcing families to use designated funeral service providers.

Furthermore, the regulations stipulate that bodies should generally not be kept at medical facilities for longer than 24 hours. Medical staff are also forbidden from illegally providing personal information of bereaved families or encouraging them to use specific services.

Context: A Crackdown on Corruption and High Costs

The introduction of these stringent rules follows a nationwide campaign launched in October 2024 to tackle corruption and misconduct within China's funeral sector. Public scrutiny intensified in August 2024 after media reports revealed a large-scale corpse trafficking case that reportedly involved over 4,000 bodies. This scandal highlighted the urgent need for reform and stricter oversight.

The government's objective is to reinforce the public welfare nature of funeral services, ensuring they are affordable, accessible, and environmentally sustainable. For years, the industry has been criticized for its high costs and lack of transparency, often exploiting grieving families.

Broader Reforms for the Funeral Industry

The regulations from the NHC are integrated into a wider overhaul of funeral management, signed by Premier Li Qiang. These comprehensive revisions, consisting of 8 chapters and 73 articles, aim to standardize management across the entire chain of services, from issuing death certificates to burial and memorial activities. Key aspects of these broader reforms include:

• Establishing a service price list system to curb excessive charges, prohibiting fees outside the approved list.
• Strengthening price monitoring and supervision.
• Stipulating that newly established funeral service institutions must be government-run and nonprofit, with no new for-profit entities permitted.
• Promoting eco-friendly burial practices such as sea, tree, flower, and lawn burials, with potential subsidies for such methods.
• Introducing hefty fines for violations, with hospital morgue infractions potentially incurring penalties ranging from 30,000 to 200,000 yuan.

These reforms underscore China's commitment to transforming funeral customs, promoting frugality, and ensuring that essential services are provided ethically and affordably to the public.