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Hospitals facing shortage of medical cotton
Hospitals now are facing with a severe shortage of medical cotton products as the biggest provider Bach Tuyet Cotton Joint Stock Company, or BBT, has stopped production and cut supplies since mid-July due to its own financial woes.
Directors of some hospitals in the city told the Daily that the hospitals were using medical cotton which they had stored before. However, the shortage would turn severe in the coming time as BBT is the dominant supplier of medical cotton on the market, holding a market share of up to 90%.
Nguyen Tran Chinh, director of the HCMC-based Tropical Disease Hospital, said that his hospital was using the medical cotton purchased earlier from BBT. However, the shortage is turning critical following supply disruption by BBT.
Director of the HCMC Children Hospital No. 1 Tang Chi Thuong agreed, saying that the shortage now was not occurring owing to stockpile. However, in the long term, the hospital will have to find another supplier replacing BBT.
At a recent meeting organized by HCMC's Health Department, An Binh Hospital complained that it has signed a contract with BBT to provide 120 kilograms of medical cotton since early this year. However, up to date, BBT has only delivered 60 kilograms.
On Wednesday, Nguyen Van Chau, director of HCMC's Health Department, confirmed with the Daily that his department received many complaints from the hospitals due to the lack of medical cotton. The department will check the current situation and find out solutions soon.
"Currently, BBT is the biggest provider of medical cotton for hospitals but they are not the only one supplier on the market. Thus, the department is considering to re-organize tenders for hospitals seeking other supply sources," Chau added.
Annually, the BBT supplied around 727 tons of medical cotton, meeting around 89.7% of the domestic market demand. The company is now holding a market share of 90%.
However, the company is on the verge of bankruptcy. Problems began with the company when in mid-July, the stock exchange temporarily suspended transactions for BBT shares due to heavy losses in 2006 and 2007.
Currently, BBT is heavily indebted with a huge sum of VND34 billion, plus a short-term bank loan of VND15 billion, which must be refunded in August and September.
General director of BBT, Ta Xuan Tho told the Daily on Wednesday that his company suspended manufacture several months ago because they did not have enough raw materials. The company has stopped supplying medical cotton for hospitals since July 15.
According to Tho, BBT is still the biggest provider of medical cotton. The company has supplied medical cotton products to hospitals directly and via indirect channels, including medical equipment traders and drug firms.
Thus, supply disruption will likely cause a shortage of medical cotton for hospitals nationwide, particularly those in HCMC.
Tho confirmed that BBT has received complaints from many hospitals that have medical cotton supply contracts with BBT. However, his company could not do anything.
"BBT now is facing with many hardships in settling financial arrears with the bank. Meanwhile, many hospitals have not settled the contracts with BBT signed since early this year. Hospitals only agree to pay their debts in case BBT pledged to resume supply," Tho said.
VNN
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