Beijing has launched a comprehensive investigation into the outsourcing of hospital morgues after a high-profile case about the morgue at Peking University Third Hospital charging exorbitant funeral fees shocked the public.

Authorities will study and formulate policies and measures to improve hospital morgue management services, the Beijing Health Commission said on Wednesday.

On April 8, a Beijing resident surnamed Deng reported to a local news radio station that he was charged 38,570 yuan ($6,050) for using the hospital's morgue to store his wife's body for less than three days before her cremation.

Beijing Tiantang Xianghe Funeral Service, which has a contract with the hospital, charged for a wide range of services, including 5,990 yuan for spa services for corpses, such as massages and baths, 6,800 yuan for shrouds and 600 yuan for a meal offering, according to a list provided by Deng.

An April 10 post on the Weibo account of the Information Office of the Ministry of Civil Affairs said the matter will be looked into.

One day later, the hospital pledged to cooperate with investigations and rectify problems as required.

An on-site inspection has been conducted by the capital's administration for market regulation, civil affairs bureau and health commission.

They found that Beijing Tiantang Xianghe Funeral Service is suspected of a number of problems such as unclear pricing and failing to implement the reference price set by the government.

The Beijing Market Regulation Bureau has opened an investigation into the company and said it will uncover the facts as soon as possible and administer severe punishment where appropriate.

The company also stored corpses without approval, according to the Beijing Civil Affairs Bureau, which plans to confiscate any illegal gains and impose heavy punishment.

In addition, Peking University Third Hospital failed to supervise the outsourced company as required by the contract.

The Beijing Health Commission has urged the hospital to take prompt and decisive action in accordance with relevant laws and regulations and service contracts to protect the vital interests of the people and standardize morgue management.