Drug suppliers' trade group warned on Monday that unpaid debts owed to them by public hospitals amount to more than 2 billion kuna (€271 million), having soared by 500 million kuna (€68 million) over the first six months of 2018.
According to a press release by the drug wholesalers’ group with the Croatian Employers’ Association (HUP), the growth of debt is unlikely to stop, which they predict would result in about a 1 billion kuna (€135 million) of newly created debt in 2018.
The dire situation has seriously put in jeopardy the economic viability of businesses in the pharmaceuticals distribution sector, with shortages of medicines likely in the coming weeks, they said.
At the end of May, the total debts of hospitals to wholesale pharmacies were more than 2 billion kuna. In addition, out of the 62 state-run hospitals in the country, 24 pay their suppliers more than 365 days after delivery, including six hospitals who take more than two years on average to settle their accounts, which exceeds payment deadlines mandated by law.
“Croatian hospitals generate on average about 80 million kuna (€10.8 million) of new debt every month, with payment deadlines exceeding anything set by regulations – which would be unsustainable in any economy… Meanwhile, drug suppliers are expected to follow all the laws, to deliver their products – medicines and medical equipment – on time, to pay their own debts and supplies and to finance salaries and contributions for 1,600 people (employed in the sector),” said Josip Matusinovic, head of the wholesale pharmacies’ coordination with HUP.
Matusinovic added that after almost a year spent on intensive but fruitless talks between HUP and government ministries, the pharmacies now believe that the only possible outcomes now are either a direct intervention by the government or a shortage of medicines.
“We notified the prime minister, and we hope that the worst scenario will be avoided, as keeping wholesalers in business is essential to maintain regular supplies of medicines to hospitals, as well as the livelihood of 1,600 employees,” Matusinovic said.
(€1 = 7.38 kuna)
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