Over R1 billion owed to 50 medtech suppliers as some PDOH halt non-emergency healthcare

Johannesburg, 06 March 2025

SAMED – the SA Medical Technology Industry Association – is once again urging the government to prioritise its response to provincial health departments’ delayed payment to medtech suppliers and systemic budgeting and transactional inefficiencies that are disrupting health services.

This latest effort by SAMED to safeguard the healthcare value chain’s integrity and access to medtech as a vital component in healthcare follows announcements by some provincial health departments (PDOH) that they have insufficient budget left for the current financial year. This has led to the paused or delayed purchasing and payment of suppliers of medical technology, including non-emergency items, by both the Gauteng and KwaZulu-Natal Departments of Health.

SAMED warns that this is delaying patient care, reducing positive health outcomes, for example,e because of late diagnosis or interrupted treatment, increasing strain on the public health system and adding to the already lengthy waiting times for services.  This notwithstanding that the Department is not complying with the legal requirement to pay suppliers within 30 days of receipt of invoice. A total of R1 148 589 692 is presently owed to 50 SAMED members, over half of which (R661 374 774) has been outstanding for more than 120 days. The full amount owing to the medtech industry is estimated to be double that.

The impact is not only crippling the medtech suppliers. It is contrary to:

  • Our President’s vision is to grow the economy, create employment and develop SMMEs in the medtech sector.
  • The objectives of the newly launched Medtech Master plan are to grow local manufacturing and reduce the trade deficit.

The acute maladministration compounds the historical debt, which SAMED started to address on behalf of members more than 15 years ago. SAMED members have struggled to carry the public health sector’s expenses, which exert a ripple effect across the medtech value chain. In a bid to survive, some businesses have stopped supplying the public health sector all altogether, whilst others have been forced to stop supplying until they get paid.

“At this critical post-pandemic, pre-G20 2025 juncture, we need viable solutions to protect South Africans’ right to access to healthcare, which includes having the right medical technology available as needed,” says Tanya Vogt, SAMED Executive Officer.

“The matter could be resolved if the government applies a greater sense of urgency and stronger resolve for increased accountability and dynamic and coordinated action.”

“SAMED strives to assist its members by bringing this matter to the attention of the public and relevant authorities.”

“We have approached the Ministers of Health, Finance and the dtic to prioritise this matter. SAMED has reiterated its willingness to engage and assist wherever possible, however, it is for the government to take the next step to resolve the current debt crisis and protect the quality of patient care in South Africa,” concludes Tanya Vogt.

 

Ends.