A group of medical device suppliers announced on Monday that they have stopped delivering to government and medical college hospitals across Kerala due to unpaid bills amounting to ₹158.7 crore. The Chamber of Distributors of Medical Implants and Disposables (CDMID), which supplies essential devices such as guide wires, guide catheters, PTCA balloons, and coronary stents, said the mounting arrears forced them to suspend supplies.
Letter to Government Highlights Crisis
In a letter addressed to the State government and hospital superintendents on August 29, CDMID stated: “Payments totalling ₹158.7 crore are pending from government hospitals and medical college hospitals in Kerala. All distributors are in dire straits and request early intervention by the government.” The association added that representatives had met Finance Minister K. N. Balagopal and the Health Minister’s personal secretary on August 1, but the assurances of payments in August did not materialize.
Distributors Running Out of Stock
CDMID explained that the prolonged delay has left them unable to pay principal suppliers and procure fresh stocks. As a result, distributors across the State are running out of critical devices required for cath labs and interventional radiology labs. From September 1, they stopped replenishing consignment stock at all government centres. “All purchase orders for accessories will also be difficult to fulfil, as available stock is negligible,” the letter added.
Demand for Immediate Clearance of Dues
As reported by The Hindu, the suppliers specifically urged the government to clear all pending invoices under the Karunya Benevolent Fund (KBF), Karunya Arogya Suraksha Padathi (KSAP), and Medisep health insurance scheme (for government officials) up to March 31, 2025. They stressed that immediate payments are necessary to settle dues with manufacturers, secure fresh stock, and restore supply chains to government institutions.
Hospitals with Highest Pending Arrears
According to CDMID, the arrears include:
- ₹29.56 crore from Government Medical College Hospital, Thiruvananthapuram
- ₹34.90 crore from Government Medical College Hospital, Kozhikode
- ₹21 crore from Government Medical College Hospital, Kottayam
- ₹13.96 crore from Pariyaram Medical College Hospital, Kannur
- ₹13.74 crore from Ernakulam General Hospital
Awaiting Government Response
Despite the escalating crisis, CDMID office-bearers said the government has not yet invited them for discussions, nor has there been any official response to their demands. The association warned that unless payments are cleared soon, the shortage of essential medical devices in government hospitals will severely affect patient care across Kerala.