Drug shortage may hit Kerala govt’s hospitals

A large number of pharmaceutical companies are likely to withdraw from drug distribution in government hospitals in Kerala from the next financial year, starting April 1, following the administration's failure to clear pending dues, according to reports.

- AM Abdussalam

Kerala Medical Services Corporation Limited (KMSCL), responsible for the distribution of medicines in government hospitals, had promised to clear all pending payments to companies—dues that have accumulated over the past four years—by March 31.

Several companies have given notice of their withdrawal from the tender, citing the contractual provision that allows them to do so before the bids are opened.

According to reports, of the Rs 600 crore owed to pharmaceutical companies that supplied medicines since 2020, KMSCL has cleared only Rs 150 crore.