PATHCARE ALSO AGREES TO AN IMMEDIATE PRICE REDUCTIONOF COVID-19 PCR TESTS
On Monday 13 December 2021, the Competition Commission (“the Commission”) and the third largest private laboratory, Dietrich, Voigt, MIA & Partners and Dr. Vermaak Incorporated (‘’Pathcare”) concluded a settlement agreement in terms of which Pathcare agreed to reduce its Covid-19 PCR test prices from about R850 to no more than R500 (VAT inclusive) per test with immediate effect. This settlement agreement is subject to the approval of the Competition Tribunal. The Pathcare settlement agreement comes at the back of an official announcement by the Competition Commission that two other major laboratories, Ampath and Lancet Laboratories, have agreed to substantially reduce the price of COVID-19 PCR tests with immediate effect.
The three laboratories also undertook to submit to the Commission, a compliance report that will include financial statements every three months, to monitor prices charged for PCR tests and any material changes in costs.
At the Commission’s media briefing held on Sunday 12 December, Competition Commissioner Mr. 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. We hope that the pathology group that has not yet settled with the Commission will follow suit and reduce unjustifiable price of COVID-19 PCR test,” says Bonakele.
The price reduction shall remain in effect for a period of two years from the date of confirmation of the consent agreements as orders of the Competition Tribunal.