Who runs the hospital

I just came back to Shanghai from HangZhou, last Saturday, and got sick. I went to a local hospital for check up, they asked if I was covered by travel insurance and would like to make a claim, I need to go to the foreigner section. So i went, and the bills comes out RMB557, RMB500 for the 15 minutes consultation on a common flu, and RMB57 for the medicine.

My friend told me the consultation for locals are only RMB14. So its a ripped off for foreigners, or shall I say the insurance company (If my claim is successful).

On the point of view of the hospital, there's the opportunity to earn more, a lot more, and unreasonable more. Is there a need for the foreigner to go to a special section for insurance claim? Does the service provided worth the fee? or its purely catching on the opportunity to ripped huge profits?