JOHANNESBURG: Following the intervention of the Competition Commission, South Africa’s three largest private pathology companies have agreed to reduce the price of the COVID-19 rapid antigen test by more than 150 rand. The new price is less than half of the previous charges of 320 and 350 rand per test.
“This is another major victory for South Africa, especially for vulnerable groups at a time of a devastating and resilient pandemic,” said Competition Commissioner Tembinkosi Bonacale. “The reduction in the prices of the Covid-19 Rapid Antigen Test will help ease the plight of the people. Broadening the access and affordability of rapid antigen testing to consumers which is an important part of the initiative to avoid the escalation of the pandemic, Bonacelle said.
Although the companies slashed their prices last month to between 230 and 250 rand, the commission still believed this was excessive, given that UNICEF costs just 50 rand for a test kit. The price agreement brings the cost of tests at private pathology companies Pathcare, Lancet and Ampath in line with the National Health Laboratory Services fee of 150 rand.
The new pricing will come into force with immediate effect and will remain in place for at least two years. The commissioner said, “The three laboratories also undertake to submit a compliance report to the commission every three months to monitor the prices charged for the COVID-19 Rapid Antigen Test and any physical change in cost. The month will include financial statements.”
The latest agreement was the second this month, when pathology companies had previously agreed to reduce the price of PCR tests to 500 rand from their previous 850 rand. “It was during the PCR test investigation that the commission came to know that there may be similar concerns with respect to the COVID-19 Rapid Antigen Test,” Bonacale said.
“The commission will continue its investigation on the supply and distribution of the COVID-19 Rapid Antigen Test,” the commissioner said. “We will not hesitate to apply for maximum administrative penalties against consumers and companies that exploit customers,” Bonacale concluded.
After receiving a complaint from the Health Department, the commission started an inquiry into the pricing. In October this year, the commission had also received a formal complaint from the Council for Medical Schemes (CMS), alleging that the price of supply of COVID-19 PCR tests by pathology groups was unfairly inflated, exorbitant and unreasonable. .
CMS, whose member medical assistance schemes have come under enormous pressure over the past two years due to the pandemic, called on the commission to investigate possible violations of the Competition Act. The Commission’s inquiry into that complaint found that pathology groups have been making significant profits since March 2020, especially in the current financial year. Health industry analysts said the settlement was a way to avoid any potentially heavy penalties that the commission could impose, especially if it was found that there was collusion between the companies or if there was any price-pricing in relation to the tests. Was.
Consumers also didn’t believe the low cost was just a goodwill gesture from companies to help them. “My immediate family of seven had to pay around 10,000 rand recently due to travel requirements. If they were really interested in reducing costs for the consumer, they could have done so months earlier by reducing their profits without involving the Competition Commission, and we could have saved a huge amount as well,” said Amrit Bhana, a Johannesburg resident. he said.
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