According to the South African Medical Technology Industry Association (SAMED), the Gauteng Department of Health (DoT) as failed to pay medical technology suppliers. These late payments are now threatening the survival of businesses and jobs, as well as the stability of healthcare delivery across the province.
More than R700 million is owed to SAMED member companies, as estimated by the Association. Many of these companies are suffering great loss, relying on loans and overdrafts to sustain cash flow, as they continue to provide essential medical products and services.
SAMED Chairperson, Scott de Oliveira, notes: “As the upcoming G20 Summit demonstrates, our government is capable of decisive action and resource mobilisation when it chooses to.”
The international Summit will be held in Johannesburg from 22 to 23 November.
“What is deeply concerning in the medtech payment crisis is the Gauteng Department’s lack of urgency to engage with us,” Scott adds. The Association has submitted repeated formal requests to meet with senior officials in the DoH with no meaningful engagement taking place as meetings are missed or correspondence unanswered according to SAMED.
“This reflects a worrying lack of accountability, urgency, and leadership from decision-makers,” Scott emphasises. He continues to warn: “Disruptions in the medical supply chain place patients and healthcare professionals at risk. Delays or interruptions in the supply of essential equipment, consumables, and support services could have devastating effects on hospitals across Gauteng.”
Unless the issue is urgently resolved, several business will be forced to suspend supply to the DoH, which would further endanger patient care. Thus, the Associations calls on provincial and national leadership to “take immediate, decisive action to clear the payment backlog and to implement a transparent, sustainable payment framework that ensures future compliance and stability”.
“It is irrational for government to champion economic growth and job creation through initiatives such as the MEDTECH Master Plan and the G20 Summit, while simultaneously eroding existing businesses and employment through maladministration. This crisis must be addressed urgently to protect patients, preserve healthcare delivery and rebuild trust between the public sector and its suppliers,” Scott concludes.
SAMED urges the media, public, and stakeholders to bring attention to this issue and hold the Gauteng Department of Health accountable. Public awareness and pressure are essential to compel action and safeguard the integrity of South Africa’s healthcare system.
