A substantial portion of this amount, MVR 78.5 million, has remained outstanding for more than 90 days. Despite multiple requests for payment, these funds have not been received, creating a critical cash flow problem for the hospital.
Corporate Maldives
ADK Hospital has raised significant concerns over delayed payments from Aasandha and the National Social Protection Agency (NSPA), with the unpaid amounts exceeding MVR 100 million for several days. The Finance Committee recently convened to address a letter sent by ADK Hospital on November 6, 2023, highlighting these payment issues- clearly showcasing how long it has been since the issue regarding the overdue payments has been raised.
In the letter, ADK Hospital detailed the severe financial strain caused by the unpaid bills. As of the letter's date, the hospital had not received a total of MVR 144.3 million for services provided to Aasandha and NSPA. A substantial portion of this amount, MVR 78.5 million, has remained outstanding for more than 90 days. Despite multiple requests for payment, these funds have not been received, creating a critical cash flow problem for the hospital.
The parliamentary finance committee meeting saw members express concerns about the previous government's tendency to delay payments after obtaining services. In addition to the concern that is now being raised by ADK, over the past seven months of 2024 there have also been multiple protests by local fishermen due to unsettled payments by the Government. Although the Government is finally settling the fishermen’s debt, the habitual delays for the ADK payments have now placed a substantial burden on the hospital, threatening its operational stability and ability to provide essential healthcare services.
It is no secret that Aasandha, the national health insurance scheme, has been consistently over budget, which might be one of the leading issues being the delayed payments as well. This budget overrun is primarily due to the high cost of pharmaceuticals, which account for 56% of the Aasandha budget. Efforts to curb these expenses, such as bulk procurement and price caps, although largely discussed by the previous administration, have still not been effectively implemented.
The financial strain is not limited to the healthcare sector. The fisheries industry has also recently appealed to the government for overdue payments, indicating a systemic issue across various sectors in the Maldives. This pattern of delayed payments is creating widespread operational challenges and financial instability for essential services.
