Mexico: Medicine cartel seeking new contracts amid slow investigation

Several companies, under investigation for presumably conspiring to manipulate the allocation of several contracts for carrying out clinical tests for Mexico’s Social Security Institute (IMSS), have been found to be participating in two ongoing contract bids. The IMSS is close to determining the winners in a series of multi-annual contracts, worth over 3 billion pesos ($200 million US approx), to run the Institute’s blood bank services. A second contract worth at least $2.7 billion pesos (150 million US) for the performance of non-invasive surgeries is also ongoing.

Telephone conversations leaked on Youtube revealed an alleged agreement between high-ranking officials at Falcón Medical Instruments and Centrum Promotora Internacional to divide the clinical study contracts between them and other companies. The situation prompted the IMSS to request Mexico’s competition watchdog, COFECE, to investigate.

The two companies, along with Selecciones Medicas del Centro, Dicipa, Hemoser and Impromed, have long dominated this kind of medical contract. These companies are also among those seeking to obtain one of the up to 18 regional contracts currently up for bidding.

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