Suppliers threaten to halt medical supplies, drugs delivery to Telangana govt hospitals over unpaid bills

Unpaid bills to suppliers may disrupt the supply of drugs, implants, surgical disposables and diagnostic kits to government teaching hospitals in Telangana, with the Twin Cities Hospitals’ Suppliers Association warning that continued non-payment could force suppliers to stop the supplies.

In a representation to Chief Minister A. Revanth Reddy, the association said its members had been supplying critical super-speciality implants, surgical disposables, life-saving drugs and diagnostic kits to government teaching hospitals under the Rajiv Aarogyasri scheme. “Due to the non-payment, suppliers are facing severe financial difficulties and are finding it increasingly difficult to sustain supplies,” the association president K.B. Ramachandra said.

He added that the association had repeatedly brought the issue to the attention of hospital superintendents, the Director of Medical Education (DME) and the Health Secretary, but had not received a response.

The representation also referred to a statement made by Mr. Reddy in the Legislative Assembly on March 26 — he said the previous government had left outstanding dues of ₹600.2 crore, including ₹240.11 crore owed to government hospitals. He had also stated that ₹927.99 crore was released by the present government over the preceding 27 months, apart from a regular monthly release of ₹34 crore to government hospitals under the Aarogyasri scheme.

Mr. Ramachandra questioned why payments to suppliers continued to remain pending despite the claimed monthly releases. The association also claimed that the Rajiv Aarogyasri Trust had not released any budget to government teaching hospitals since September 2024.

The association also referred to a claim of the Telangana Aarogyasri Network Hospitals Association, at a press conference held on September 24, that ₹2,500 crore was pending under Aarogyasri Scheme.

The suppliers’ association has sought clarity from the government on whether the Aarogyasri scheme will continue in government teaching hospitals. It has also urged the government to direct the concerned departments and hospital administrations to clear the overdue payments immediately, warning that further delay could affect the supply of medicines and other medical consumables.