Suppliers drop plan to take back medical stock from Kerala govt hospitals after assurance on arrears

Thiruvananthapuram: The Chamber of Distributors for Medical Implants and Disposables (CDMID) has withdrawn its decision to take back critical cardiac devices supplied to government hospitals and medical colleges across Kerala after the Directorate of Medical Education (DME) assured timely clearance of pending dues.

The move follows a meeting between CDMID representatives and DME officials, during which the latter promised to issue directives to hospital superintendents to expedite payments.

Earlier, CDMID had warned it would recall supplies if arrears up to March 2025 were not cleared by Sunday. The association said, despite repeated requests, only a “meagre amount” of dues had been settled so far, while total arrears stood at ₹158.7 crore. CDMID had earlier halted supplies from September 1 after submitting a letter in August highlighting the issue. It had also urged the government to clear invoices under the Karunya Arogya Suraksha Padhathi (KASP), Karunya Benevolent Fund (KBF) and Medical Insurance Scheme for State Employees and Pensioners (MEDISEP) projects.

At the recent meeting, CDMID pointed out that the superintendents of Kozhikode and Thiruvananthapuram Medical College Hospitals had reportedly insisted on replenishing stocks before releasing payments — a condition the suppliers rejected. CDMID maintained that they would not restock hospitals until dues up to March 2025 were cleared.

The suppliers also alleged that funds allocated for their payments were being diverted for other purposes. In response, the DME clarified that ₹1,600 crore had been sanctioned by the Finance Department, assuring that part of the amount would be used to clear CDMID’s dues. Following this assurance, the distributors decided not to withdraw the existing stock, though they remain unwilling to supply fresh materials until payments are settled.

The DME has promised to complete the payments by October 15. Meanwhile, Ernakulam General Hospital has already released one month’s payment to the distributors.

Pending dues are spread across 21 government hospitals and medical colleges, with Kozhikode Medical College Hospital leading with ₹34.9 crore, followed by Thiruvananthapuram MCH (₹29.56 crore), Kottayam MCH (₹21.74 crore), Pariyaram MCH (₹13.96 crore), and Ernakulam General Hospital (₹13.74 crore), according to CDMID’s July statement.

The pending payments cover essential cardiac care devices such as stents, guide wires, guide catheters, and PTCA balloons.