Gov. Gavin Newsom announced, Aug. 26, that the state of California has signed a contract with PerkinElmer, a diagnostic company, to produce an additional 150,000 COVID-19 tests per day. The company will be contractually obligated to provide results within 24 to 48 hours. The state’s goal is to set up a laboratory in California to run tens of thousands of additional tests by Nov. 1, and to run at full capacity by March 1, 2021.
The state intends to disrupt the COVID-19 testing marketplace and drive down costs. The cost per test will be $30.78 at 150,000 per day. The average cost for a COVID-19 test currently is $150 to $200, with Medicare and Medicaid reimbursing roughly $100 per test.
The tests will be used to increase testing in communities high in risk of contracting COVD-19, including essential workers, people in congregate settings and communities of color.
The tests are created using polymerase chain reaction diagnostic testing. The state is evaluating new technology for testing, and its contract with PerkinElmer allows the company to adopt new technology for a lower price. The state also intends to use different technologies with multiple laboratory partners.