Pharmaceutical firms to stop supplies over one-year gov’t debt

Producers of pharmaceutical products in the country have served notice to stop giving out goods on credit due to the government’s indebtedness.

The Pharmaceutical Manufacturers Association of Ghana and the Chamber of Pharmacy have told the government to settle all arrears “immediately” or else they would suspend supplies to all health facilities funded by the National Health Insurance Authority (NHIA).

In a letter addressed to the Minister of Health, Kwaku Agyeman Manu, issued on May 7, the group said the government had reneged on its responsibility to pay for supplies covering 12 months.

Failure of the government to honour its obligation will leave them with “no other option than to stop supplies on credit to all funded health facilities effective July 1, 2020”.

The letter signed by the Chairman of the Chamber of Pharmacy, Harrison Abutiate, further noted that the funds would prevent “the collapse of their companies which are already distressed.”

They are demanding payment to “ensure that pharmaceutical companies are not forced to initiate supplies to the Service Providers in question based on bank guarantees and/or cash and carry.”

This will not be the first time the companies have issued threats over debt.

On February 10, the pharmaceutical companies announced they will cease medical supplies to health facilities under the National Health Insurance Scheme (NHIS) until they are provided payment guarantees.

“Health facilities owing more than three (3) months shall no longer enjoy any credit facilities from our members,” they said in a statement.

Again in December 2019, Private Health Facilities in Ghana (PHFAoG), including some pharmacies, raised concerns about government debt for at least 10 months.