Tallinn hospital spends 450 mln kroons without tendering
10.03.2010, 15:30"They decided that tendering was expensive and time-consuming," said State Audit Office in its new report on local government enterprises which claimed that East Tallinn Central Hospital spent about 450 million kroons in 2008 without tendering, writes Äripäev.
State Audit Office said that while the City of Tallinn has recommended that all municipal enterprises should registered themselves as contracting authorities, East Tallinn Central Hospital decided against it.
The hospital management has explained that its objective as a commercial undertaking that provides health care services is to earn income. Therefore, the hospital must operate as a business.
Peeter Mardna, member of the hospital's supervisory board, said that the hospital has commissioned a legal expert study which showed that it had not violated the law. "In the medical market it is almost important to operate by fully complying with the public procurement act."