Pathcare agrees to drop Covid-19 PCR test prices immediately

The third-largest laboratory, Drs Dietrich, Voigt, Mia & Partners (Pathcare) has agreed to reduce its Covid-19 polymerase chain reaction (PCR) test prices from about R850 to no more than R500 (VAT inclusive) per test with immediate effect. 

The Competition Tribunal still has to sign off on the settlement, but the agreement follows this weekend’s developments with Ampath and Lancet Laboratories.

Both companies agreed to substantially reduce the price of Covid-19 PCR tests immediately. 

The three laboratories also have to provide a compliance report to the Competition Commission, that includes financial statements every three months, to monitor prices charged for PCR tests and any material changes in costs.

At the Competition Commission’s media briefing held on Sunday, commissioner Tembinkosi Bonakele called on all pathology groups to follow suit and reduce their Covid-19 PCR Tests to R500.

“We also call upon all labs conducting PCR tests to be sensitive to the plight of the public in this time, and use the settlement as a guidance,” he said.

“This a major victory for South Africans, particularly the vulnerable groups during the time of a devastating and resilient pandemic.

“This substantial reduction of PCR test prices will surely alleviate their plight of consumers and enhance greater access to Covid-19 PCR testing, which is a critical part of the initiatives to avoid the escalation of the pandemic.”

The price reduction shall remain in effect for a period of two years from the date of confirmation of the consent agreements as ordered by the Competition Tribunal. 

The Council for Medical Schemes (CMS) lobbied against private pathology laboratories, alleging that the price for supplying PCR tests for coronavirus was unfairly inflated, exorbitant and unjustifiable for South African consumers.

But there still seems to be some reluctance with some in the pharmacare industry to reduce these prices.

“We hope that the pathology group that has not yet settled with the commission will follow suit and reduce the unjustifiable price of the Covid-19 PCR test,” said Bonakele.

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