COVID-19 testing: Three pathology groups agree to REDUCE prices
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The Department of Health had lodged a complaint against companies over the cost of COVID-19 Rapid Antigen tests
In what is probably considered a win for the South African consumer, three of the country’s largest private pathology groups have agreed to a further price reduction of COVID-19 rapid antigen tests.
Rapid antigen tests by Pathcare, Lancet and Ampath will now cost no more than R150 (inclusive of VAT), which is a drop from the previous cost of R350. This is thanks to an agreement reached by the groups and the Competition Commission.
COMPETITION COMMISSION’S AGREEMENT ON COVID-19 TESTING PRICES
The Competition Commission says the price reduction of the tests will remain in place for the next two years.
“The three laboratories have also undertaken to submit to the Commission, a compliance report that will include financial statements every three months, to monitor prices charged for Covid-19 Rapid Antigen tests and any material changes in costs,” the Commission said.
The Department of Health had lodged a complaint with the Commission earlier in December against service providers delivering the tests.
“DOH’s complaint alleges that private laboratories and retail distributers have historically charged around R350 for a rapid antigen test, reducing recently to around R250 in November and December 2021. The DOH alleges that the National Health Laboratory Services (NHLS) charges R150 and that a test kit costs R50 through UNICEF, and therefore prices above R150 could be excessive”
“Following an investigation, the Commission found that prima facie that Pathcare, Lancet and Ampath may have engaged in a contravention of section 8(1)(a) of the Act. Unlike a PCR test, a Covid-19 Rapid Antigen test is relatively simple insofar as the test can be administered by a nurse and the result rapidly generated”
The Competition Commission
COVID-19 RAPID ANTIGEN TESTS – PROBE STILL UNDERWAY
Competition Commissioner Tembinkosi Bonakele has issued a stern warning to companies offering the said tests, saying they will not hesitate to apply for maximum administrative penalties against them, should they be found guilty of exploiting consumers and customers.
Bokanele says as the Commission, they’ll continue with their investigation into the supply and delivery of the COVID-19 tests.
“This is yet another major victory for South Africans, particularly the vulnerable groups during the time of a devastating and resilient pandemic. The reduction of Covid-19 Rapid Antigen test prices will help alleviate the plight of consumers and widen accessibility and affordability of Covid-19 Rapid Antigen testing, which is a critical part of the initiatives to avoid the escalation of the pandemic”
Competition Commissioner Tembinkosi Bonakele
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