Govt hospitals in Kerala need ₹1015 cr for medicines, gets Rs 356 cr

Thiruvananthapuram: The state's Department of Health requires Rs 1014.92 crore for the procurement of medicines for government hospitals and medical colleges in the current financial year. However, the financial allocation in the 2025-26 budget was only Rs 356.4 crore.

Out of the Rs 934.28 crore allocated for medicine expenditure in 2024-25, the Kerala Medical Services Corporation received Rs 356.4 crore as budget allocation. Later, another Rs 150 crore was given as additional authorisation. Minister Veena George had also confirmed this in the Assembly.

As of January, 2025, the Medical Services Corporation has to pay 693.76 crore as arrears to pharmaceutical companies. The act of companies stopping the supply due to arrears will exacerbate the shortage of medicines in government hospitals.

However, the health department claims that the companies have not withdrawn from the tender process due to non-payment of dues. In the event of a shortage of medicines, patients have to wander outside the hospital to get surgical equipment and medicines because no alternative methods are effective.

Funds sanctioned, says K N Balagopal

The allegation that the budget allocation for the public health sector has been cut is baseless. In the last financial year, Rs 9,667 crore was allocated, but Rs 9,994 crore was sanctioned. The expenditure is 103 per cent, the minister said.

This year, the allocation is Rs 10,432 crore, of which Rs 2,504 crore has been transferred.

Medical Services Corporation's outstanding dues to pharmaceutical companies