Drug giants stop supply to hospitals over pending bills

Companies like Ranbaxy,Glaxo,Biocon,Novartis,Johnson and Johnson and others came forward for bidding and after getting the contract,started the supplies. However,after the first round of supplies between July and September,the companies are still awaiting their payment. After running from pillar to post,the company representatives have now stopped further supplies,awaiting clearance of their previous bills. As a result,the stock of medicine is fast exhausting in the hospitals.

“The firm given the order has not supplied paracetamol to us. As of now,we do not have a single tablet of paracetamol in our supply and we are purchasing the drug locally for hospital consumption,” said VK Srivastava,Chief Pharmacist of Motilal Nehru Hospital,Allahabad. He added that the orders had been placed in the month of October,but till now,no supply has reached them.

Similar is the condition of Ursala District Hospical,Kanpur,where anti-rabies vaccine and insulin had to be purchased locally. “We have the supply for most of the medicines. There was a shortage of anti-rabies vaccines,so 130 vials of it were purchased locally a few days ago. The order for insulin is already placed with the firm and we are expecting it will reach us soon,” said AP Verma,Chief Pharmacist of Ursala hospital.

Meanwhile,more than 10 companies have written to the health authorities for payment of their outstanding amount. Department sources said Ranbaxy supplied drugs to 42 locations,but received payment for only four places. Novartis supplied rabies vaccines to 210 hospitals and health centres but received payment from 13 centres only. Biocon supplied insulin to 89 centres across the state,but even after three months it has received payment from only one centre.

“We have met health officials time and again,but the payments are still due,” said an official of one of the companies which has sent letter to the Director General of Health. “We meet all the terms and conditions of the supply order. But with such laxity on the part of the government,it is difficult for us to continue the supply,and hence we have suspended the supply till the payments are cleared,” he said.

Agreeing that there has been delay in payment to the companies,Dr Ramji Lal,Director General,Medical and Health,said that he has asked the districts for the details of the drug budget and expenditure.

“I am talking to the suppliers as well,because we will have to sort out the problems with them if we want such big companies to come to the state again,” he said.

Lal also said that the cause of the delayed payment seemed to be a confusion at the district level. “The budget that we had sent to the districts for payment against the contract drugs supplied by these firms has,in some districts,been used to settle old payments which should not have been done,” he said.

“We have enough stock of drugs to last us for a while. Meanwhile,I have also asked each district to prepare the demand for drugs till March and will place the remaining order of drugs with these firms soon,” he added.