The Managing Director of Intravenous Infusion Limited, Mr. David Klutse, has appealed to government to find urgent means to aid it to make prompt payment to its service providers under the National Health Insurance Scheme (NHIS).
According to him, government owes them over a period of one year now and it’s greatly dwindling the day-to-day activities of the company. Adding that, the sustainability of pharmaceutical companies in the country are greatly being affected by government’s continuous delay in payments for services the providers have rendered.
Saying, “We have a situation where in some parts of the country, the delay is as long as one year. That obviously has a significant impact on our business operations. We are owed over GH¢10m and some of it goes way back for over a year. When you go to the banks to borrow, they don’t want to lend to you. Because they are not sure when NHIA is going to pay you, for you to pay them because of the uncertainty in the payments.”
Mr. David Klutse was speaking at the company’s annual general meeting which brought together shareholders of the company to give updates on their financial status and the way forward in Accra.
According to him, “the present administration has been making huge strides in addressing the issues. But unfortunately, we are in an industry where everyday people in hospitals are using infusions. Therefore, unless there is an emergency funding to address the backlog and also tackle the current issues, we are continually adding more to the debt. We are appealing to the government to treat our payment with some urgency.
We want to continue to be a good partner to the government in the provision of health care to the people, because the NHIS is one of the best social interventions. We do not want to get to the point where cash and carry will become an option or will become the only option for us, but we cannot also just let infusions go without money.”
He however said, the company was in the final stages of doing private placement to be able to raise enough money to sustain its operations.
The chairman of the company, Issac Osei, in his statement, said that, the operating performance had improved in the company’s two business units. This, the chairman said had contributed to increased cash generation.
He however noted that, the company is challenged with enough working capital due to the NHIA constraints, by not making payments in a timely manner for the service providers.
He explained that, in order to address the challenge, the company has applied for funding under the Government of Ghana’s business assistance funding. The Business Assistant Funding he said when completed, will make funds available to settle their current Overdraft with their bankers.
Mr. Osei assured the shareholders that, the management would take a proactive stance and try to prevent future problems and turn things around.
While they re-elected Directors for the company at the AGM, ratified the appointment of Mr. Devine Dugbartey Doku as a Director, authorize the Board of Directors to fix the fees of the external Auditors as well as approved the remuneration of the Directors, they also seized the opportunity to announce increases made in its revenue by over 55% which is GH¢ 10.6m in 2016 to GH¢ 16.4m in 2017. And earnings per share was also 0.012052, indicating an increase of 307.10%.