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Hospital Debt to Wholesalers Exceeds 730 Million Euros

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lijekovi, skupi lijekovi, farmaceutska industrija / Image by: foto Shutterstock

The debt of hospitals to wholesalers for delivered medicines and medical products exceeded 730 million euros at the end of July, reported the Croatian Employers’ Association (HUP) on Friday, warning of the seriousness of the growing debt trend as the availability of medicines is already seriously threatened.

As of July 31, the debt of Croatian hospitals to wholesalers for delivered medicines and medical products reached over 730 million euros, of which more than 550 million euros are overdue and unpaid obligations.

In July alone, the debt increased by more than 68 million euros on a monthly basis compared to June, which is almost double the average monthly increase in debt in the first half of the year. “The trend of such debt growth is concerning and unsustainable,” stated HUP.

Wholesalers have exhausted their credit limits with banks, and the secure and regular supply of medicines and medical products is already questionable, it adds.

Particularly concerning, the association notes, are the statements from hospital directors who warn in the media about financial unsustainability and that many hospitals are spending more on salaries than allowed limits, leaving only a minimal amount for covering other costs after employee payments.

– The availability of medicines and medical products to patients in Croatian hospitals is already seriously threatened – emphasizes HUP.

Despite discussions with the Ministry of Health, no solution has been found, therefore wholesalers are appealing to the Ministry of Health and the Government to urgently intervene with a minimum of 500 million euros to immediately stop further accumulation of debt, and to ensure legally prescribed payment deadlines to wholesalers, states HUP’s announcement.

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