EU Authorities Place Cap on Late Payments from Public Hospitals to Device Companies

The check is in the mail. Really! Device manufacturers that currently wait as long as 800 days in some EU countries to receive payment from public hospitals are applauding a compromise text for the revision of directive 2000/18/EC on combating late payment in commercial transactions. A key element of the agreement is a new payment cap of 60 days for public authorities. The European Parliament (EP) and the Council came to an agreement on 14 September 2010 that general payment terms for public authorities will become 30 days. The deadline can only be extended to a maximum of 60 days in justified, exceptional circumstances. This outcome is a major achievement for member companies, notes pan-European trade association Eucomed in a press release.