Tag: SAMED

Categories : Hospitals Medical IndustryTags :

SAMED Calls for Urgent Action as Gauteng Health Supplier Debt Crisis Reaches Critical Point

On By ModernMedia

The South African Medical Technology Industry Association (SAMED) has called for urgent and measurable action to resolve the escalating supplier debt crisis within Gauteng’s public health system, warning that continued delays in payments and procurement failures are placing both healthcare delivery and supplier sustainability at serious risk.

The call comes ahead of the Gauteng Department of Health’s hospital-level engagements with suppliers on 27 May, following MEC for Health and Wellness Faith Mazibuko’s recent acknowledgement that approximately R8 billion is owed to suppliers.

SAMED’s latest member data shows that R245 517 666.12 is owed to 27 medical technology suppliers, with a significant portion overdue well beyond the public sector’s 30-day payment requirement. Many affected suppliers are South African SMEs now operating under severe financial strain, forced to absorb the consequences of systemic procurement and payment failures while continuing to supply essential medical devices, diagnostics, consumables, and other critical technologies needed for patient care.

While SAMED welcomes the Department’s willingness to engage directly with suppliers, the association stresses that these discussions must lead to concrete commitments and operational action.

For SAMED and its members, this crisis is not new.

The association has spent more than a decade raising concerns about systemic procurement dysfunction, delayed payments, weak supply chain controls, and administrative failures that continue to undermine the effective functioning of the public healthcare system.

Today, those longstanding failures have evolved into a critical risk for both the healthcare sector and the businesses that support it.

In some cases, suppliers are delivering urgently needed products to hospitals while administrative bottlenecks make timely payment structurally impossible. This is particularly acute where delayed purchase orders, including for consignment stock arrangements, create a mismatch between supply delivery and budget allocation.

Monica Lucas, SAMED Board Member said, “SAMED members have continued supporting public healthcare under extraordinary financial strain because patient care cannot simply pause. But suppliers cannot indefinitely act as the financiers of a dysfunctional system. This is no longer just a debt issue; it is a structural operational failure that requires urgent executive intervention.”

Following the Department’s engagement with service providers on 23 May, SAMED has formally written to MEC Mazibuko requesting greater transparency on the Department’s debt reduction plans, and stronger accountability across finance, supply chain management, and hospital leadership.

SAMED will participate constructively in the upcoming hospital engagements and remains committed to finding practical solutions in partnership with government.

However, the association cautions that engagement without accountability will not restore supplier confidence.

After years of repeated commitments and limited progress, the sector requires clear timelines, written commitments, and measurable implementation.

“Direct engagement with leadership is welcome, but suppliers need more than reassurance. We need transparency, accountability, and a credible plan to resolve both the immediate debt burden and the underlying operational failures that continue to create it. Without that, the risks to healthcare continuity will only deepen.” – Scott de Oliveira, SAMED Chairperson

SAMED is calling for immediate action, including:

  • Publication of a verified and transparent debt position
  • A time-bound repayment plan for outstanding supplier debt
  • Executive oversight of hospital procurement and payment failures
  • Improved responsiveness from finance and supply chain leadership
  • Structured follow-up engagements with measurable progress reporting

SAMED remains committed to constructive engagement but warns that the public healthcare system cannot continue relying on suppliers to absorb systemic dysfunction indefinitely.

This week’s engagements must mark the beginning of real corrective action, not another cycle of discussion.

Categories : Ethics and Law Expert OpinionTags :

Gauteng Department of Health’s Non-payment Crisis Threatens Suppliers and Healthcare Stability

On By ModernMedia
Photo by Towfiqu barbhuiya on Unsplash

The South African Medical Technology Industry Association (SAMED) is raising the alarm over the Gauteng Department of Health’s ongoing failure to meet its financial obligations to medical technology suppliers – a crisis that now threatens business survival, jobs, and the stability of healthcare delivery across the province. 

The Gauteng Health Department currently owes SAMED member companies more than R700 million. Despite fulfilling their contractual commitments and continuing to supply essential medical products and services, many companies have been forced to carry this debt burden for months without payment. To remain operational, suppliers are relying on costly loans and overdrafts simply to sustain cash flow and pay their employees. 

SAMED Chairperson, Scott de Oliveira, notes that a recent member survey revealed several companies are on the brink of closure, with job losses imminent – even as South Africa prepares to host the G20 Summit, a global event intended to showcase Johannesburg and the country’s economic potential. 

“As the upcoming G20 Summit demonstrates, our government is capable of decisive action and resource mobilisation when it chooses to,” says de Oliveira. “What is deeply concerning in the medtech payment crisis is the Gauteng Department’s lack of urgency to engage with us.”  

Despite repeated formal requests from SAMED to meet with senior Gauteng Department of Health officials – including the Chief Financial Officer, Head of Department, and hospital Chief Executive Officers – no meaningful engagement has taken place. Meetings are frequently missed, and correspondence has gone unanswered. 

“This reflects a worrying lack of accountability, urgency, and leadership from decision-makers,” de Oliveira emphasises. 

The consequences of this inaction are far-reaching. The mounting financial strain on suppliers threatens not only the sustainability of small- and medium-sized enterprises but also the continuity of international subsidiaries that have invested in South Africa and are vital to the delivery of healthcare services. 

“Disruptions in the medical supply chain place patients and healthcare professionals at risk,” warns de Oliveira. “Delays or interruptions in the supply of essential equipment, consumables, and support services could have devastating effects on hospitals across Gauteng.” 

Several SAMED members have indicated that, unless the issue is urgently resolved, they will be forced to suspend supply to the Department, a decision that would further endanger patient care. 

SAMED 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,” concludes de Oliveira. “This crisis must be addressed urgently – to protect patients, preserve healthcare delivery, and rebuild trust between the public sector and its suppliers.” 

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.