The big business with antigen tests

Covid tests are increasingly becoming an opaque business: non-transparent companies are spreading, and the assumption of costs by the federal government ensures a healthy profit.

Initially seen as being curious, they are now part of the cityscape or village-scape: the mostly white tents or containers where, working in piecework, the staff drill long cotton swabs into the nose of the walk-in customers or collects saliva. Testing centres have sprung up like mushrooms since the beginning of the pandemic, and are not only operated by cantons, universities or pharmacies, but also by private individuals.

An insider working in the testing industry confirms to Watson: "The provision of antigen tests is a particularly lucrative business for private operators". In contrast to complex PCR tests, which have to be evaluated in a laboratory, rapid antigen tests can be purchased relatively cheaply from a wholesaler, he adds.

Low outlay, and the federal government pays the costs
In contrast to normal medical products in mass use, the prices for these test are extremely non-transparent. Suppliers from the EU and Switzerland – such as Lucerna Chem AG or the sales organisation of the Basel-based Roche pharmaceutical company – offer rapid antigen test kits for CHF 6.50 each.

The amount is no coincidence: it’s also the maximum amount allowed for the test material used in the rapid test, whose cost have been taken over by the federal government since mid-December. Including the CHF 6 for the test stick and the analysis material, test centres can charge the health insurance companies a total of up to CHF 36 for the smear of the mucous membranes. These, in turn, can reclaim the amount from the federal government, at the expense of taxpayers.

In practice, however, the actual purchase price of a rapid antigen test is likely to be lower than the maximum CHF 6.00: the Federal Office of Public Health (FOPH/ Swiss BAG) currently lists more than 140 rapid antigen test products that may be used in Switzerland. Many of them are manufactured by companies in Chinese cities such as Hangzhou or Shenzhen, and are sold by European import dealers for around CHF 3 each.

It’s therefore not surprising that more and more test centres have appeared in Swiss cities in the last few weeks. The quantity ensures the profit: private operators of test centres can not only optimise the costs in terms of material, but also in terms of the necessary infrastructure, personnel or IT.

The space used for the test centre is either rented or, in the case of the city of Zurich, can even be made available free of charge, as the responsible Public Safety Department has revealed on request from watson. Because the test capacities are needed, they have "waived the collection of fees for the use of public land for test centres". They are an "important tool in the fight against the pandemic," says Robert Soós of the city administration.

Cantons don’t know how many test centres there are or who operates them
The regulatory hurdles are also low-threshold, according to several cantons. Among other things, a protection concept must be adhered to, suitable premises must be available and a specialist person must be present. Staff must have been trained to take samples in practice, but don't need a diploma. If these conditions are met, the operators will receive a permit from the canton.

The "rapid antigen test for specialist application" takes less than five minutes.                     
The "deintest.ch" test centre at the bus station near Zurich Central Station.                           
Eye-catching colours and low prices: test centres compete for customers in Swiss cities.
Illustrations: Watson

Not every canton knows how many such privately-operated test centres there are, however, and which providers are behind them. On request, for example, the St. Gallen Department of Health says: "We do not keep a list, the test offer is constantly changing." In Zurich too, it’s not known how many test centres there are and who operates them. A corresponding list is currently being drawn up in the canton of Graubünden.

So who are the big private players in the testing business? On the Internet, operators compete for the best ranks on Google, and even place advertisements there. Their websites look extremely professional, the test centres themselves are elaborately designed to attract as much attention as possible. But it’s not always clear who is behind the companies, however. For example, only the name of the popular "deintest.ch" testing station by Zurich's bus station is known.

Trustee as the sole member of the Board of Directors
The website has a masthead that lists the Zug-based Kessler Cooperation AG as the responsible company. But the only person registered as a member of the board of directors in the commercial register turns out to be a trustee, however. He told Watson that he is the managing director of a company that specialises in founding and managing public companies and limited liability companies, and that he has nothing to do with the operational business of "deintest.ch".

The responsible person did not want to comment to Watson, as he did not want to appear in the media. The secrecy goes so far that even the owner information of the web address "deintest.ch" has been anonymised by a privacy service provider.

Another large private provider is "testcenter-corona.ch", with nine test sites in the cantons of Zurich, St. Gallen, Glarus and Liechtenstein. The St. Gallen family doctor Michael Albertini is listed as the operator; but anyone who registers with him online for a Covid test sends his data to Vienna, however: the Austrian AMZ GmbH, which operates several test centres in the neighbouring country, is named as the company responsible for the registration.

But you won't read anything about this in the official masthead of "testcenter-corona.ch", and the test certificate is only issued in the name of Albertini. When asked how the business is running, the family doctor says that it is, of course, profitable – "but you won’t become very rich" - but he doesn’t want to give any concrete figures.

Price supervisor criticises high cost assumption
The authorities are also aware of the issue. On request, the FOPH states that the CHF36 charge mentioned is only the maximum amount, and that the Confederation only covers the actual costs. In practice, this means that the individual test centres charge the full amount: a check carried out on Thursday revealed a charge of CHF 35.

The FOPH speaks of a "balancing act between the supply situation, the securing of the necessary capacities and the remuneration of the most efficient service provision".

The maximum amount has been reduced several times in the past, most recently from CHF 47 to CHF 36 two months ago. This price is still too high for the price supervisor (Preisüberwacher) Stefan Meierhans, however. "The price supervisor submitted a recommendation to the Federal Council in mid-December," says his press spokesman. In other words, he called for a reduction in tariffs. Whether this will happen can be seen at the latest next Wednesday. The Federal Council is responsible for "any adjustments to the tariff structure" for the Covid tests, according to the FOPH. It remains to be seen whether the business will still be quite so worthwhile.