Governor Gavin Newsom spoke at a new $25 million COVID-19 testing facility in Valencia on Friday, which is expected to significantly increase the state’s testing capacity.
Newsom spoke at the new facility on Livingston Avenue in Valencia, which opened Friday. The lab is expected to be able to process up to 150,000 test kits daily, focusing on the most commonly used polymerase chain reaction (PCR) test, which isolates genetic material from a swab sample, according to the governor’s office.
“This lab is happening at the right time,” he said. “This new laboratory will allow California to ensure its testing capacity is timely, equitable and cost-effective – just when Californians need it most.”
The governor noted the colder winter months, combined with the holiday season, could lead to a spike in cases across the state.
The Valencia lab is expected to increase the state’s testing capacity by a minimum of 75 percent, Newsom said.
“We’ve got to box this disease in,” he said. “More testing is foundational. But what you do after the tests is the real test of the leadership we need to see at the local, regional, state and federal level. And that is tracing and making sure we’re isolating and quarantining individuals so they can recover and we can mitigate the spread for asymptomatic, pre-symptomatic individuals, or those that are experiencing symptoms. Timely testing is foundational in terms of advancing those goals.”
Photo Courtesy of the Governor Newsom’s Office
The lab is run by PerkinElmer, a Massachusetts-based diagnostics company that partnered with California to improve COVID-19 testing efficiency and capacity, according to the governor’s office.
Currently, there are about 300 employees at the Valencia testing location, with up to 700 people expected to be employed, which would rank the facility among the top 20 employers in Santa Clarita.
The governor announced in August that California has signed a groundbreaking contract with a major diagnostics company, which is set to allow California to process up to an additional 150,000 COVID-19 diagnostic tests a day, with a contractual turnaround time of 24-48 hours.
It took two months to build the faculty, which was made under the budget, according to Newsom.
See Related: Governor Announces New Covid Testing Lab In Valencia, Will Double State’s Testing Capacity
This “first-of-its-kind” agreement aims to disrupt the testing marketplace, help break supply chain logjams and drive down the costs for tests for every Californian.
“California is using its market power to combat global supply chain challenges and protect Californians in the fight against COVID-19. Supply chains across the country have slowed as demand for COVID-19 tests has increased, and flu season will only exacerbate the problem,” Newsom said in a statement back in August. “So we are building our own laboratory capabilities right here on California soil with a stable supply chain to fight the disease, lower the prices of testing for everyone and protect Californians most at risk from COVID-19.”
The state continues to evaluate new technological breakthroughs in testing, which is why this contract includes provisions that enable the contractor to adopt new technology at a lower price point. Additionally, the state plans to leverage multiple technologies or modalities with multiple laboratory partners to ensure that we diversify our testing capabilities.
Photo Courtesy of the Governor Newsom’s Office
The per-test cost would be $30.78 at 150,000 tests per day. For context, Medicare and Medicaid both reimburse at roughly $100 per test, while the average cost of a COVID-19 test ranges from $150 – $200 per test, according to Newsom’s office.
To support this contract at the lowest cost to taxpayers, the state will enter into a contract for third-party billing services to recoup costs from health insurance companies or other payers, according to the state.
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