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California Signs Contract To Expand COVID-19 Testing

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Sacramento, CA — California currently averages about 100,000 coronavirus tests per day, but that number will soon increase.

Governor Gavin Newsom says the state has entered into a $1.4 billion contract with a Massachusetts company to process an additional 150,000 diagnostic tests per day. The test results will be known within a 24-48 hour window, which is quicker than the current turnaround time.

Newsom says the plan is for a laboratory to start processing tens of thousands of additional tests by November 1st, and then be at full capacity no later than March 1st.

He adds, “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.”

The Governor’s Office adds that the per-test cost would be $30.78 at 150,000 tests per day. For context, the Governor notes that Medicare and Medicaid both reimburse at roughly $100 per test, and he says the average cost of a COVID-19 test currently ranges from $150 – $200.