Healthcare Crisis Deepens in Kerala as Government Defaults on Payments

Leader of the Opposition V.D. Satheesan highlighted a dire healthcare situation in Kerala’s public sector hospitals during his address in the Kerala Assembly on July 2. He pointed out that government arrears totaling over ₹615 crore to pharmaceutical companies have led to severe drug shortages. The financial strain extends to free medical care schemes like Karunya Arogya Suraksha Padhati (KASP), with the government owing ₹926.31 crore to public hospitals and ₹329.50 crore to private hospitals.

Despite claims of awards for extensive healthcare coverage, public hospitals are struggling with delayed reimbursements, while private hospitals have ceased free treatments under KASP due to financial constraints. Mr. Satheesan criticized the government’s minimal budget allocation of ₹678.54 crore for KASP, underscoring the urgency of addressing the mounting healthcare debt to ensure continued medical services for Kerala’s population.