₹100 medical tests performed for ₹18:Experts say tests not possible at such low rates, results will be wrong

The National Health Mission (NHM) has awarded a contract for pathology tests in government hospitals of Madhya Pradesh to Bhopal-based Science House Medicals Private Limited. The company secured the tender by bidding 81.2% lower than the Central Government Health Scheme (CGHS) rates. This means a test that costs ₹100 will now be conducted for around ₹18. Experts say that quality testing is not possible at such low rates, and this could pose a risk to patients’ health. Meanwhile, the company and NHM officials are defending the decision as appropriate. Read the report… How did the company get a ₹180 cr tender? The state government began outsourcing pathology tests in government hospitals to private companies in 2020. After the previous tender, a new one was issued on February 12, 2026. This tender is based on a hub-and-spoke model, where samples from smaller centres are tested at district-level labs. CGHS rates were taken as the base rate. The contract was to be awarded to the company offering the highest discount. When the tender opened on March 9, 2026, Science House won by offering an 81.2% discount. It received a contract worth about ₹36 crore annually (₹180 crore over 5 years). Why are serious questions being raised about quality? Health experts and pathologists in the state consider this tender impractical and potentially dangerous for public health. Former health official Dr. Padmakar Tripathi says that CGHS rates, which are used as the base, are already 2–3 times lower than market rates. Even private hospitals struggle to operate at these rates. In such a situation, a company offering tests at 81% below these rates raises serious doubts. According to him, quality testing at such low prices is not feasible. How will tests be done if costs aren’t covered? Dr. Tripathi explains that a Complete Blood Count (CBC) test costs ₹300–400 in the market, while the CGHS rate is ₹270. After an 81.2% discount, the test would have to be conducted for around ₹50. However, the cost of reagents alone is about ₹70, excluding expenses for machines, maintenance, electricity, and staff. He warns that in such a scenario, either the quality of tests will suffer or the risk of incorrect reports will increase. He also noted that such cases have occurred before, where reports did not match the patient’s actual condition. Company CEO says discount was carefully calculated Company CEO Puneet Dubey says the discount was offered after thorough calculations. According to him, India’s diagnostics sector has grown rapidly over the past decade. Earlier, there was dependence on foreign equipment and reagents, but now these are available domestically at lower costs with good quality. NHM’s argument: This will benefit the public NHM Managing Director Dr. Saloni Sadana said the tender process followed all rules. CGHS rates were set as the base, and the condition was that the contract would go to the company offering the highest discount. On this basis, Science House emerged as L1 and was issued a Letter of Intent (LoI); an MoU will be signed soon. When asked why an 81% discount shouldn’t raise doubts, given that the previous tender was awarded at around a 30% discount, she said that six companies qualified in the technical bid and all offered discounts of over 60%. Income tax raids on science house In September 2025, the Income Tax Department conducted raids at more than 30 locations in Bhopal, Indore, and Mumbai linked to the company’s owners, Jitendra Tiwari, Shailendra Tiwari, and their associates. Evidence of tax evasion and hawala links reportedly emerged during the investigation. Questions over ₹943 cr payments to the company Congress MLA Jaivardhan Singh alleged that unnecessary tests were conducted through collusion. According to him, about ₹943 crore was paid for conducting 12.84 crore tests on a population of 7.5 crore. However, the company denies these allegations and claims it conducted only 4.5 crore tests for 1.5 crore people.