Punjab’s Rs 40bn centralized medical tender triggers alarm over price spikes, single bidders

A Rs40 billion centralized procurement of surgical and medical disposables by Punjab has landed under the scanner after Minute Mirror

LAHORE: A Rs40 billion centralized procurement of surgical and medical disposables by Punjab has landed under the scanner after Minute Mirror examined official procurement documents.

Managed directly by the Specialized Healthcare & Medical Education (SHC&ME) Department, this multi-billion-rupee initiative represents the province’s first centralized framework contract, effectively replacing the long-standing decentralized system under which individual public teaching hospitals and medical institutions conducted their own independent competitive bidding processes.

While the primary objective of centralizing such a massive health department exercise was to leverage bulk purchasing power, lower overall market rates and enhance institutional transparency, an analysis of the purchase indicates sharp price increases, significant market distortions, and severely restricted commercial competition.

According to documents available with Minute Mirror, out of 125 evaluated medical device categories, a staggering 50 items, representing 40 percent of the entire tender portfolio, attracted only a single responsive bidder. Furthermore, 45 item categories yielded just two responsive bidders, while 22 categories managed to attract three bidders.

Procurement specialists and governance experts point out that although provincial procurement rules do not strictly prohibit single-bidder contract awards, relying on sole suppliers for such a vast portion of a multi-billion-rupee contract severely undermines competitive price discovery, weakens public sector bargaining power and risks creating artificial vendor monopolies across public sector healthcare facilities.

Rather than securing bulk-buying discounts for taxpayers, the comparative statement demonstrates widespread price inflation when measured against established benchmark prices from the Director General Health Services (DGHS). Out of 23 medical disposables with available DGHS reference rates, 18 items, nearly 80 percent, registered dramatic price escalations.

According to documents, the rate increases are most glaring among routine, high-volume surgical supplies used daily across hospital emergency rooms and operating theaters. Surgical blades across sizes 11, 15, 22, and 23 witnessed a steep 470 percent surge, rising from the benchmark rate of Rs 13.67 to Rs 78 per piece. Black braided silk sutures saw price hikes of up to 275 percent, jumping from Rs 77 to Rs 289 per unit. Similarly, essential 24G IV cannulas climbed 154 percent from Rs 96.30 to Rs 245 each, while standard blood transfusion sets increased by 40 percent, escalating from Rs 105 to Rs 147.56 per unit.

The financial evaluation has also drawn strong criticism from participating firms for appearing inconsistent with earlier proceedings conducted by the Grievance Redressal Committee (GRC). During those formal hearings, several bidding vendors submitted extensive technical objections regarding bidder qualification criteria, product specification compliance, and regulatory eligibility. Stakeholders argue that the comparative evaluation sheet reflects financial outcomes that directly diverge from the issues debated and documented before the grievance committee. Legal experts contend that any apparent divergence between grievance proceedings and financial outcomes must be clearly explained through detailed, reasoned written orders to maintain public trust, uphold administrative fairness, and withstand prospective judicial scrutiny.

Given the immense scale of public spending and the critical reliance of public teaching hospitals on these vital medical supplies, transparency advocates and healthcare commentators urged the provincial authorities to ensure institutional accountability, preserve regulatory compliance, and safeguard the overall integrity of Punjab’s largest public healthcare procurement exercise.