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Private labs seek govt's help for conducting free coronavirus tests

The Supreme Court on Wednesday directed that private labs should conduct coronavirus tests free of cost, observing they need to be philanthropic in the hour of national crisis

twitter-logoPTI | April 16, 2020 | Updated 13:05 IST
Private labs seek govt's help for conducting free coronavirus tests

After the Supreme Court directed private laboratories to conduct coronavirus tests free of cost, many labs expect the government to come up with modalities so that they can sustain testing facilities amid their growing expenses.

Arjun Dang, chief executive officer of Dr. Dangs Lab, said, "...we endorse the Supreme Court's judgment which aims at increasing accessibility to Covid-19 testing and to make it affordable for the common man". However, for private labs there are numerous fixed costs, including for reagents, consumables, skilled manpower and maintenance of specific infrastructure, he argued.

The whole process of testing for coronavirus also entails immense infection control measures like personal protective equipment, viral transport media and the need to keep sanitation and employee safety in mind at every step, he said.

"Private labs are barely able to recover costs at the government-mandated cost of Rs 4,500. Keeping this in mind we hope the government comes up with modalities so that testing in private laboratories remains sustainable," said Dang. He said his lab is currently following the apex court's order and doing the test free of cost while awaiting further clarity from the government.

A Velumani, Chairman and Managing Director of Thyrocare Technologies Ltd. agreed. "Private labs do not have the wherewithal to do this costly test free of cost," he said.

"It is the duty of the government to reimburse the costs and we do not mind working without profits," he said. Velumani said, the court in its order, has indicated that government should find a way to make testing free. "If the government doesn't subsidise, it would be a huge setback in the fight against Covid-19," he said.

In a big relief to the poor, the Supreme Court on Wednesday directed that private labs should conduct coronavirus tests free of cost, observing they need to be philanthropic in the hour of national crisis. The government had fixed Rs 4,500 for private labs for screening and confirmation tests for Covid-19.

The top court in its interim order said the government should immediately issue directions for carrying out free Covid-19 tests in the National Accreditation Board for Testing and Calibration Laboratories accredited labs or any agencies approved by the World Health Organisation or the Indian Council of Medical Research.

It took note of the government's submission that government laboratories are conducting these tests free of cost. A day after the court ruling, Biocon Ltd Chairperson Kiran Mazumdar-Shaw on Thursday said it is "impractical" to implement the Supreme Court's order to make all coronavirus tests free, expressing concern that it will lead to plummeting of tests as private labs cannot run their business on credit.

Also read: Rs 1,000 profit in Rs 4,500 per coronavirus test; Thyrocare debunks demand for higher price

Also read: Private labs for COVID tests face protective gear shortage

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