(Yicai Global) Jan. 13 -- Shares in Xi'an International Medical Investment slumped by the exchange-imposed daily limit today after two of its hospitals, one of which is a major earner, were ordered to halt operations for three months from today after being involved in medical crises that resulted in the possibly preventable deaths of a newborn baby and an elderly patient.

International Medical’s share price [SHE:000516] plunged 10 percent to close at CNY8.37 (USD 1.32). The stock has lost a quarter of its value since the scandal broke on Jan. 5.

Xi’an Gaoxin Hospital and Xi’an International Medical Center hospital must close for 90 days, according to a notice on the Xi'an Health Commission’s website today.

Heads also rolled. Xi'an Gaoxin's director of the outpatient department, director of the obstetrics department and the vice director of medical administration were fired and its general manager has been suspended. While Xi'an International Medical Center's legal representative and chair were sacked, and the managing deputy superintendent and the outpatient department's nursing supervisor suspended.

Public anger has been fueled by two medical incidents that went viral online. A pregnant woman went to its Xi'an Gaoxin Hospital on Jan. 1 but was not admitted because her nucleic acid test result for the novel coronavirus was four hours too old. She began bleeding badly and was finally admitted after waiting for two hours at the entrance. She lost the baby.

In another incident, a Xi’an resident said in a post on Weibo that her father started suffering from chest pains on Jan. 2 but was refused entry to hospital as he was from a medium-level Covid-19 risk area. She said her father was eventually admitted for surgery, but died due to the long delay. The facility is believed to be Xi’an International Medical Center Hospital.

International Medical runs three large general hospitals: Xi’an Gaoxin Hospital, Xi’an International Medical Center Hospital and Xi’an Shanluo International Medical Center.

Xi’an Gaoxin Hospital was the only profitable one of the three in the first half of last year, according to firm’s semi-annual earnings report. It had CNY42.3 million (USD6.6 million) in net profit, compared with International Medical Center’s CNY360 million net loss. Revenue came in at CNY538 million (USD84.6 million), accounting for 40 percent of International Medical’s total earnings over the period.

Xi’an Gaoxin Hospital was also the company’s most profitable medical institution in 2020, making CNY60.7 million. Xi’an, central Shaanxi province-based International Medical reported a net profit of CNY45.5 million that year.

Editor: Kim Taylor