Medical device suppliers halt deliveries to Kerala govt hospitals over Rs 158.7 cr dues

Kozhikode (Kerala) | A group of medical device suppliers on Monday said it has stopped deliveries to government hospitals and medical colleges in Kerala over unpaid bills totaling Rs 158.7 crore.

The Chamber of Distributors of Medical Implants and Disposables (CDMID), which supplies essential devices including guide wires, guide catheters, PTCA balloons, and coronary stents to cath labs and interventional radiology labs in government hospitals, cited pending payments as the reason for halting supplies.

In a letter dated August 29 to the state government and hospital superintendents, CDMID said, “Payments totaling Rs 158.7 crore are pending from government hospitals and medical colleges in Kerala. All distributors are in dire straits and request early intervention by the state government.”

The letter noted that meetings were held with the state Finance Minister K N Balagopal and the personal secretary to the Health Minister on August 1.

“We were assured that we would be receiving some payments in August. To date, we are not able to pay the principal suppliers to procure stocks, and distributors across Kerala are running out of guide wires, guide catheters, PTCA balloons, and coronary stents,” the letter said.

CDMID clarified that, as of September 1, they are compelled to refrain from replenishing consignment stock at all government centres.

“All purchase orders for accessories will also be difficult to fulfil, as available stock is negligible,” it added.

The suppliers specifically requested payment of all outstanding invoices for the Karunya Benevolent Fund (KBF), Karunya Arogya Suraksha Padathi (KSAP), and MEDISEP (health insurance scheme for government officials) up to March 31, 2025, to enable them to pay principal suppliers, procure new stock, and resume supplies to government institutions.

According to CDMID, pending arrears include Rs 29.56 crore from Thiruvananthapuram Medical College, Rs 34.90 crore from Kozhikode Medical College, Rs 21 crore from Kottayam Medical College, Rs 13.96 crore from Pariyaram Medical College in Kannur, and Rs 13.74 crore from Ernakulam General Hospital.

CDMID office bearers said the state government has not yet invited them for discussions, and there has been no official response thus far.