An NHS trust is appealing against a decision not to award it a £238m contract to provide community health services in Kirklees.
Calderdale and Huddersfield NHS Foundation Trust has lodged a formal complaint with the health regulator Monitor after the five-year Care Closer to Home contract went to community interest company Locala.
The trust, which is forecasting a £20m deficit by the end of this financial year, expected to lose £5m if it missed out on the contract.
The deal would have brought Calderdale and Huddersfield £20m in new income, with associated costs.
But Batley based Locala was to take the contract from October after it was named as the successful bidder yesterday by North Kirklees and Greater Huddersfield Clinical Commissioning Groups (CCGs).
Now hospital bosses are demanding an investigation into why Locala got the contract.
They teamed up with Mid Yorkshire Hospitals Trust, the Forget Me Not Hospice, and groups of GPs to bid for the contract.
The organisations said in a statement: “As a partnership we do not agree with the decision nor the process undertaken by the CCGs in evaluating and making the decision on the contract.
“As such we have informed the CCGs that we intend to lodge a formal complaint with Monitor asking for them to commence an investigation into the CCGs’ procurement process and its impact on the outcomes for patients.
“Our overriding reason for doing this is to ensure that patients and their families can be confident in the process and confident that they will receive the very best care as a result.”