'Hospitals owe suppliers over JD50m'

Apr 19,2012

AMMAN -- The Kingdom's hospitals currently owe over JD50 million to medical equipment suppliers, according to a sector representative.

Jihad Maani, deputy chairman of the medical suppliers association, told The Jordan Times that King Abdullah I University Hospital in Irbid owes drug stores and providers of medical equipment around JD21 million, while the outstanding debts of the University of Jordan Hospital exceed JD7 million.

Prince Hamzah Hospital also owes suppliers money, Maani said, although he did not have the exact figure.

Maani, who is also the representative of the medical sector at the Jordan Chamber of Commerce, said outstanding debts owed by the Libyan government to private hospitals, have caused financial problems for drug and medical equipment suppliers.

Private hospitals have consumed large quantities of these supplies to treat Libyan patients and are currently unable to pay their bills, which range between JD20 million and JD30 million, due to the unpaid debts of the Libyan government, he said.

The most recent figures presented by the Private Hospitals Association put Libya's debt to hospitals at around JD100 million.

Officials and sector representatives told The Jordan Times that the Libyan government had transferred JD50 million to pay off part of its outstanding debt to the Kingdom's hospitals and hotels.

The government also owes private hospitals money for providing dialysis to nearly 2,000 kidney patients, Maani said, adding that local medical equipment companies are the main providers of dialysis supplies.

Due to the financial shortfalls facing suppliers, foreign firms have recently imposed stricter conditions on Jordanian importers, Maani said, calling on the government to pay its outstanding dues to the sector.

According to the industry representative, around 500 local companies provide medical supplies, employing thousands of Jordanians.

The Jordan Times attempted to contact the finance ministry for a response, but officials were not available for comment.