HYDERABAD: Suppliers of surgical and diagnostic products to government hospitals in Telangana have sought an immediate revision of tender rates and clearance of long-pending bills, claiming that rising input costs triggered by the ongoing conflict in West Asia and mounting payment delays have made supplies financially unviable.
In a representation submitted to Health Minister C Damodar Rajanarasimha on Tuesday, the Twin Cities Hospitals Suppliers Association (THSA) warned that continued delays in payments could affect the availability of surgical consumables and diagnostic products in government hospitals, including during emergencies.
The association claimed that dues of around Rs 7 crore each are pending from Gandhi Hospital and Niloufer Hospital, Rs 4.5 crore from Osmania General Hospital, Rs 1.5 crore each from Government ENT Hospital and Modern Government Maternity Hospital, and
Rs 1.25 crore from Sarojini Devi Eye Hospital. Suppliers also raised concerns over pending Aarogyasri-related payments. According to THSA, approximately Rs 18 crore remains unpaid by OGH, Rs 9 crore by Gandhi Hospital and Rs 5 crore by Niloufer Hospital for supplies made under various surgical and specialty treatment programmes.
THSA president KB Ramachandra said payment delays had persisted since 2022, but the recent increase in raw material costs had worsened the situation. “Six months ago, we stopped regular supplies of surgical and diagnostic products to government hospitals and have been supplying only during emergencies. Out of 14 quarters, payments have been made for only two quarters. If the situation continues, we may soon be unable to supply even during emergencies,” he said.
Ramachandra said a large number of hospital consumables, including syringes, intravenous cannulas, IV sets, catheters and other single-use products, are manufactured using petrochemical derivatives. Disruptions in global supply chains and fluctuations in crude oil-linked raw material prices following the conflict in West Asia have significantly increased production costs, he added.
According to suppliers, the cost of several consumables has increased by 10% to 30% over the past few months. The procurement cost of a standard disposable syringe, which earlier ranged between Rs 1.30 and Rs 1.40, has reportedly increased to Rs 1.75–Rs 1.90. Similarly, IV cannulas that were earlier procured at around Rs 5 per unit now cost more than Rs 6. Suppliers said they continue to operate under contracts awarded when raw material prices were substantially lower. With costs rising and payments being delayed, many vendors claim to be under severe financial stress.
They warned that unless rates are revised and pending bills cleared, more suppliers may withdraw from future tenders. The association said it had repeatedly raised the issue with the Health department but had not received a response.
