Testing laboratories in the US are making windfall profits as a direct result of the COVID-19 pandemic. Using tax data from Hawaii, we found that a statewide increase in monthly revenue for private diagnostic labs tracked the volume of COVID-19 PCR tests in lockstep. Between May and December 2020, Lab revenue grew by an average of 8% per month. Labs are making more than $10 profit in one test.
Why are these benefits possible? The US healthcare system allowed laboratories to set prices for COVID-19 tests above their cost, costing taxpayers and private insurers for three reasons.
opinion | High cost of frequent covid testing
Testing laboratories in the US are making windfall profits as a direct result of the COVID-19 pandemic. Using tax data from Hawaii, we found that a statewide increase in monthly revenue for private diagnostic labs tracked the volume of COVID-19 PCR tests in lockstep. Between May and December 2020, Lab revenue grew by an average of 8% per month. Labs are making more than $10 profit in one test.
Why are these benefits possible? The US healthcare system allowed laboratories to set prices for COVID-19 tests above their cost, costing taxpayers and private insurers for three reasons.