Competition Commission reaches settlement with Ampath and Lancet laboratories to cut their prices for Covid-19 PCR tests with immediate effect
Covid-19 polymerase chain reaction test prices at SA’s two largest private pathology laboratories, Ampath and Lancet, have been cut to R500 including VAT after an agreement between the two companies and the Competition Commission.
“It was observed that private pathology laboratories have experienced substantial cost reductions in conducting Covid-19 PCR tests and were processing significant volumes, especially during infection waves, yet the prices charged remained persistently high and unchanged,” said Bonakele. “Even though in recent months there have been some negligible downward price adjustments, nonetheless the price for tests remained excessively high.
Bonakele declined to specify what the profit margins were that the private laboratories were earning on Covid-19 PCR tests, as the Commission’s settlement with Ampath and Lancet was conducted on a “without prejudice basis.” The Commission also opted to forgo taking a legal route that would have enabled it to impose a fine on the laboratories to achieve an immediate price decrease.
“For us to get these price levels took some compromises and one of those was this issue of a fine. We decided to forgo a fine for an immediate and deep price decrease.”
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