Medical Device Suppliers Stop Deliveries to Kerala Govt. Hospitals Over ₹158 Crore Dues

Fast Summary

• Medical device suppliers in Kerala,represented by the Chamber of Distributors of Medical Implants and Disposables (CDMID),have stopped deliveries to government hospitals and medical college hospitals due to unpaid bills amounting to ₹158.7 crore.
• The halted supply affects essential medical devices such as guide wires, guide catheters, PTCA balloons, and coronary stents critical for cath labs and interventional radiology labs.
• CDMID had earlier sought intervention from the Kerala State government, citing meetings with the Finance Minister on August 1 were they were assured some payments by August; no payments have been received yet.
• Key institutions reportedly owe significant amounts: ₹29.56 crore from Thiruvananthapuram medical College, ₹34.90 crore from Kozhikode Medical College, among others.
• Suppliers are requesting settlement of arrears under schemes like Karunya Benevolent Fund (KBF), Karunya Arogya Suraksha Padathi (KSAP), and Medisep up to March 31, 2025.
• As per CDMID officials, their limited stocks are depleting quickly; purchase orders for accessories will not be processed unless dues are cleared.
• The state government is yet to respond or initiate further discussions with affected distributors.

Indian Opinion analysis

The halting of medical supplies to Kerala’s government health infrastructure underscores deeper challenges in public healthcare financing and management within the state. Delay in clearing outstanding dues has implications not only for patient care but also risks disrupting ongoing operations at key medical institutions reliant on these devices for life-saving procedures.

The issue raises questions around fiscal prioritization given that several welfare schemes like KBF or Medisep depend heavily on timely vendor payments for sustainability. With such ample pending arrears-spanning major institutions-the concern over cascading effects is valid as smaller private suppliers struggle both financially and operationally due to prolonged delays.

Timely resolution is essential not only from a financial accountability outlook but also as delayed action could strain trust between private entities supplying critical resources and public health systems dependent upon them-a situation other states may learn lessons from before similar crises emerge elsewhere.

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