Bihar pathology tender row: Hindustan Wellness wins amid allegations of corruption and rule violations

Bihar's pathology services tender has sparked significant controversy following the decision of the Bihar State Health Services (BSHS) to award the contract to Hindustan Wellness, despite objections from the company that placed first in the evaluation, Science House. The dispute stems from allegations of errors in bid evaluation and rule violations during the tendering process. Science House claims that BSHS misinterpreted its financial bid, which included a significant 77% discount on its proposed rates. The company was disqualified from the selection process without being given an opportunity to clarify these discrepancies, leading to its legal challenge in the Patna High Court.

On October 23, 2024, when the financial bids were opened, several companies involved in the bidding process raised concerns about inconsistencies in the rates quoted by Science House. According to the company, BSHS misread its proposal, which resulted in the disqualification. Science House also asserts that the department failed to provide a chance to explain or rectify the misunderstanding. As a result, Science House has filed a petition with the Patna High Court, calling for an urgent review of the case. The company is challenging the tender process, claiming that it was flawed and unfairly handled, and is requesting the court to investigate the evaluation of bids.

In addition to Science House's petition, a separate case has been filed in the High Court accusing BSHS of ignoring established procedures and rules in the tender process. The petitioners allege that BSHS favored Hindustan Wellness, which was ranked second in the bidding process, by overlooking critical discrepancies in the bid evaluation. The petition further claims that the tendering process violated Bihar's financial regulations and procedures, which are designed to ensure fairness, transparency, and adherence to standard protocols in awarding government contracts. This has raised concerns about the integrity of the process and the future of public health services in Bihar.

The ongoing dispute has also put the future of public-private partnership (PPP) models for healthcare in Bihar at risk. For the past five years, Bihar’s residents have received pathology services through a PPP model, which allowed private companies to operate within government hospitals. However, the state's move to privatize pathology services by issuing this tender has led to uncertainty about the continuity of these services. Currently, the company managing the PPP model is uncertain about whether the government will continue its partnership, further complicating the situation. As of now, despite Hindustan Wellness being declared the winner of the tender, no formal agreement has been made between the company and BSHS, leaving the provision of pathology services in limbo.