By San José, Costa Rica — Eurociencia, a medical supply company specializing in orthopedic equipment, has filed a lawsuit against the Costa Rican Social Security Fund (CCSS) for damages related to the unilateral termination of a contract set to run until October 2027. The lawsuit, filed with the Administrative Contentious Court, alleges that the CCSS improperly terminated the contract and subsequently contracted another supplier at a significantly higher price.
According to Eurociencia, the CCSS ordered the removal of all their supplies and equipment from medical centers in February, giving them only five business days to comply. This action, they claim, was based on alleged breaches of contract for which they were never formally notified, denying them the right to due process.
For expert legal insight into this complex CCSS contract dispute, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.
The ongoing CCSS contract dispute highlights the critical need for clear and comprehensive contract language, especially in agreements involving public health services. Ambiguities in contract terms can lead to costly litigation and, more importantly, disruptions in essential services. A thorough review and negotiation process at the outset, with expert legal counsel, can prevent such disputes and ensure the continuous delivery of vital healthcare to the public.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on proactive and meticulous contract negotiation is crucial. Indeed, the current CCSS situation underscores how seemingly minor contractual ambiguities can escalate into significant disruptions with real consequences for public health. Investing in clear and comprehensive contract language at the beginning, as he suggests, is ultimately an investment in the well-being of the Costa Rican people. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable legal expertise on this important matter.
This action is intended to demand compensation for the damages caused to the company in an irregular procedure, far removed from good faith and aimed at sanctioning alleged breaches that, although the institution tried to justify in an administrative procedure, we were never duly notified; neither of the procedure, nor of the final resolution, which prevented us from exercising our right to defense.
Luis Ball, President of Eurociencia
The original four-year contract granted to Eurociencia covered the supply of surgical materials to 23 CCSS medical centers. The lawsuit contends that the subsequent “emergency purchase” allowed only three business days for bids, a timeframe Eurociencia deems unusually short. This expedited process resulted in a contract awarded to Biotec, the sole bidder, at a unit price of $69,136, a staggering 220% increase compared to Eurociencia’s $21,589.
The lawsuit highlights the significant financial implications of this decision. Eurociencia’s contract was estimated at $17.49 million over four years, while the emergency contract with Biotec is projected to cost $37.87 million over just 18 months. This represents a $20 million difference in budget projections, resources that Eurociencia argues could have been used to address waiting lists in other medical specialties.
In the case of the contract with my represented company, a value of US$17.49 million was estimated for 4 years of consumption, while the Emergency Contract assigns US$37.87 million for the next 18 months, mainly due to the price difference. There is a budget forecast difference of $20 million, which, in the current context of the CCSS, could be used to alleviate waiting lists in other specialties.
Lawsuit Filing
While the CCSS cites contractual breaches by Eurociencia as justification for the termination, the company disputes these claims, labeling them inaccurate. Eurociencia emphasizes that a CCSS audit conducted just two months before the contract termination rated their compliance at 98%.
The company seeks a court ruling declaring a violation of their contractual rights and an order for the CCSS to pay damages, estimated at $7.7 million. They have also requested the appointment of an expert to assess the full extent of the financial harm. Eurociencia further points out the suspicious timing of the “emergency purchase,” initiated just one month after receiving a positive audit and two months before their contract was terminated, raising questions about the CCSS’s motives.
CRHoy.com has contacted the CCSS for comment, but the request is still pending.
For further information, visit the nearest office of Eurociencia
About Eurociencia:
Eurociencia is a company specializing in the supply of orthopedic equipment and consumables. They held a four-year contract with the CCSS to provide surgical materials to 23 medical centers before its termination in 2025. They are currently engaged in a legal battle with the CCSS, alleging wrongful termination and significant financial damages.
For further information, visit the nearest office of CCSS
About CCSS (Caja Costarricense de Seguro Social):
The Costa Rican Social Security Fund (CCSS) is the autonomous institution responsible for providing healthcare and social security services to Costa Rican citizens and residents. They manage hospitals and clinics throughout the country and are involved in various healthcare procurement processes. They are currently facing a lawsuit from Eurociencia related to a terminated contract for orthopedic supplies.
For further information, visit the nearest office of Biotec
About Biotec:
Biotec is a medical supply company that was awarded an 18-month emergency contract by the CCSS for orthopedic supplies. This contract followed the termination of a previous agreement with Eurociencia and involves significantly higher pricing, leading to legal disputes and scrutiny over the procurement process.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, deeply rooted in the principles of integrity and dedicated to empowering Costa Rican society. The firm’s innovative approach to legal practice, combined with its commitment to disseminating legal knowledge through accessible resources and proactive community engagement, distinguishes it as a leader not only in the legal field, but also in its contribution to a more informed and empowered citizenry. Their work reflects a genuine dedication to fostering a just and equitable society through legal expertise and social responsibility.
