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Public health crisis looms as Kerala government hospitals battle medical implant supply halt

Kerala medical device payment crisis deepens as suppliers halt critical cardiac device deliveries to government hospitals due to over Rs 158 crore in unpaid arrears

Kerala’s government hospitals are already facing a crisis as suppliers of critical cardiac devices have stopped deliveries over pending arrears. Now, the suppliers have issued an ultimatum in a letter sent to all medical superintendents and heads of cardiology departments in the state’s medical colleges.

Earlier, the Chamber of Distributors for Medical Implants and Disposables (CDMID), an association of suppliers, decided to halt the supply of stents, guide wires, catheters, and PTCA balloons after sending multiple letters to the state government requesting payment of arrears.

According to the distributors, Rs 41.34 crore was pending up to June 2024, while an additional Rs 117.34 crore has accumulated over the last 14 months.

Now, the CDMID has warned that it would be forced to take out its consignment stock kept in various government-run institutions if a portion of the pending arrears is not paid before October 5.

The CDMID sent its last letter on August 29, in which it announced its decision to stop the supply of devices. The new letter is a continuation of that communication. In it, the CDMID demands the payment of arrears up to March 31, 2025.

Kozhikode Medical College Hospital tops the list of unpaid bills, with more than Rs 34 crore due to the distributors. It is closely followed by Thiruvananthapuram Medical College, which owes over Rs 29 crore.

A CDMID representative said that some government hospitals had conveyed that they received funds for one month and requested supplies to resume. “But with that meagre fund, we cannot do anything,” he said, while confirming that the suppliers had received a small portion of the pending arrears from a few government centers.

In the first week of August, representatives of the distributors had met the private secretary of the health minister and submitted their representation. CDMID claimed that the government had promised to take necessary action in August, but nothing happened. This, they said, forced them into a situation where they cannot supply further, as they are unable to pay principal suppliers to procure stocks. They also noted that distributors across Kerala are running out of stock of guide wires, catheters, PTCA balloons, and coronary stents.

“Our intent is not to create problems or challenges for the general public, but this fight is for our survival,” wrote the suppliers in the letter.

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