THIRUVANANTHAPURAM: The government hospitals in the Kerala are facing a severe shortage of life-saving medicines due to outstanding dues of nearly Rs 500 crore owed by the Health Department to pharmaceutical companies. Despite this critical shortage, the Kerala state government has not taken any action.
Patients in government hospitals across Kerala are unable to access medicines from the government hospital pharmacies, compelling them to purchase medicines at higher costs from external sources. This scarcity in government pharmacies is a direct result of the state’s failure to compensate drug companies for their supplies.
The procurement of hospital medicines is managed through the Kerala Medical Services Corporation (KMSCL), which has failed to make payments to companies across three supply phases. Consequently, many companies have stopped the delivery of medicines now.
The state’s Finance Department attributes the non-payment issue to the severe financial crisis faced by Kerala, indicating a need for time to decide on bill payments. However, unless the Finance Department resolves this, the scarcity of medicines is likely to persist.
This crisis has significantly disrupted the operations of Primary Health Centers (PHC) and Medical colleges. Reports indicate pending dues of Rs 200 crores from the government in the previous financial year. Of that the Finance Department sanctioned Rs 120 crore by the end of November 2023, only bills worth Rs 40 crores have been cleared from the treasury, leaving the companies dissatisfied with the remaining amount still pending.
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