State hospitals being ripped off
Image: Tshepo Kekana
Gauteng hospitals are paying for medical supplies at exorbitantly higher costs, some at 39 times higher than the market price.
This has now raised questions of collusion and corruption in the supply chain management of hospitals.
The revelation was made in a written response by the Gauteng department of health to DA MPL Jack Bloom on purchases made by some of the hospitals this year.
Three companies submitted quotes for crutches which were bought by South Rand Hospital. The quotes stood at R318, R325 and R328 each. But the market price for this item is R120, Bloom said.
In its response to this purchase, the department said quotations were obtained from suppliers registered in its database.
The hospital also bought diathermy pencils used in operating theatres at R127 each while the market price was just R25.
In its explanation, the department said: "The department accepted the lowest acceptable price, according to the responses from the market, and the accepted bidder was the highest scoring [according to procurement framework].
"However, looking at the two prices, they are incomparable and thus this warrants an investigation by the department."
The Helen Joseph Hospital bought suction liners at a cost of between R59 and R79 while the market price for the same items were R25 each.
The department said should investigations reveal any involvement of officials or collusion by suppliers, there will be consequences.
The worst rip-off purchase was of suction canisters used as temporary storage containers for secretions or fluids removed from the body.
These were bought at R1000 a unit while the market price was R25. The department said this would also be investigated. It was not stated which hospital made the purchase.
Bloom said the quotes given by businesses are suspicious and the decision to investigate was the right move.
"What could happen is that the three quotes could be coming from three different companies but who are owned by the same person. The other scenario is that the companies could collude among themselves to keep the price high. This is not new and the department must deal with it."