A prominent Hong Kong medical entrepreneur, Dr. Tse Wai-ip, founder of Clarity Medical Group, has been declared bankrupt for a second time following persistent disputes over a multi-million-dollar contractual debt with a business associate. The latest ruling stems from allegations that Dr. Tse failed to adhere to a phased repayment plan outlined in a previous settlement, according to court documents reviewed on November 10, 2025.
The ongoing legal conflict involves Dr. Tse and a business owner identified only by the surname Mok. The dispute centers on financial obligations arising from a patient referral arrangement that spanned several years, in which companies associated with Mr. Mok directed patients to Dr. Tse’s medical entities in exchange for service payments.
Failed Partnership Leads to Escalating Debt
Between 2019 and 2021, Dr. Tse’s entities, including Clarity Medical and its subsidiary Saintford, entered into numerous service agreements with five companies owned by Mr. Mok. Under these agreements, Mok’s companies would refer patients, and Saintford would absorb the associated costs, effectively paying for the referrals.
However, the arrangement soured, leading Mr. Mok to claim that Dr. Tse failed to honor the contractual terms, resulting in a substantial outstanding debt. Mr. Mok initially claimed Dr. Tse owed HK$4.91 million. This claim led to the first bankruptcy application against Dr. Tse last year (2024).
Following the initial application, the parties reached a settlement in October 2024. Dr. Tse made an initial payment of HK$500,000 and committed to repaying the remaining HK$3.97 million across three subsequent installments. Based on this agreement, Mr. Mok withdrew the initial bankruptcy petition.
Court Dismisses Legality Challenges
According to court filings for the second application, Mr. Mok alleged that Dr. Tse subsequently failed to make the agreed installment payments totaling the remaining HK$3.97 million. This purported breach prompted Mr. Mok to file a second bankruptcy application against the medical group founder this year.
Dr. Tse’s legal team contested the court’s decision, arguing that the original contracts signed with Mr. Mok’s companies were misleading and potentially unlawful. They also contended that the 2024 settlement agreement, which resolved the first bankruptcy case, should be invalidated.
However, the court rejected these challenges. The presiding judge emphasized that the October 2024 settlement agreement was legally binding and enforceable, ruling against Dr. Tse’s claims regarding the legality of the original contracts and the settlement terms. Consequently, the court issued the second bankruptcy order against Dr. Tse Wai-ip.
Implications for Medical Business Operations
This legal development raises questions about the financial health and operational stability of Clarity Medical Group, although the court order is specifically leveled against Dr. Tse as an individual. While the current ruling confirms the binding nature of settlements reached in bankruptcy cases, it also underscores the significant financial risks inherent in complex business partnerships involving patient referral arrangements.
Experts suggest that such high-profile bankruptcy cases serve as a cautionary tale for entrepreneurs regarding the meticulous management of extensive contractual liabilities. For businesses engaging in referral-based models, clear, enforceable contracts and strict adherence to repayment schedules are crucial to mitigate the risk of severe financial and legal repercussions. The outcome of this case confirms the legal validity of negotiated settlements even when underlying contractual disputes are simultaneously being challenged.