Unpaid Rs 400 crore bills: Hyderabad govt hospitals at risk of losing supply of life-saving drugs

Hyderabad: Hyderabad’s major tertiary government hospitals and Employee State Insurance (ESI) healthcare facilities are facing a looming shortage of life-saving drugs due to unpaid bills totalling Rs 400 crores.

The Twin Cities Hospitals Suppliers Association (TCHSA) has decided to stop supplying drugs until these pending payments are cleared.

TCHSA’s struggle to get payments cleared

Since the beginning of the year, the State government and the ESI Directorate have accumulated substantial outstanding payments to TCHSA members.

Despite numerous representations to the health department and other relevant agencies, no action has been taken to resolve the issue. Consequently, the TCHSA, which includes over 1,500 members, has ceased drug supplies to government and ESI hospitals in the past few weeks.

TCHSA leaders have repeatedly warned about the unsustainable business conditions due to delayed payments.

In March, TCHSA president S Ramchand emphasised during a media interaction the critical situation the suppliers are facing.

On Friday, TCHSA member Girish Bhatt reiterated the urgency, stating, “For the past two months, we’ve been appealing to the State government and ESI officials to settle the pending bills. So far, no one has provided any assurances. We cannot continue supplying life-saving drugs under these conditions.”

Buffer stock available, says government

In response to the halt, senior officials at the Telangana Medical Services and Infrastructure Development Corporation (TGMSIDC) assured that there is sufficient buffer stock of medicines in State-run tertiary hospitals to last the next three to four months.

Superintendents and senior doctors at institutions such as Osmania General Hospital (OGH), Gandhi Hospital, Fever Hospital, Niloufer Hospital, and others in Hyderabad confirmed the current adequacy of their medicine supplies.

Independent procurement measures

Health officials highlighted that the Hospital Development Society (HDS) funds, controlled directly by hospital superintendents, allow for the independent procurement of medicines.

“We have funds through HDS that enable us to procure medicines independently,” said Dr Zaira Sheikh from Gandhi Hospital, aiming to mitigate the immediate impact of the supply stoppage.

“As the healthcare sector grapples with these financial challenges, the need for a prompt resolution becomes increasingly critical to ensure uninterrupted patient care and prevent further disruptions in the supply of essential medications” Dr Sheikh added.