22 December 2021

New contract to reduce Rapid Antigen Test costs for health services

A new contract for Rapid Antigen Test kits will achieve significant cost reductions for the Victorian public health sector over the next 12 months according to a pre-Omicron assessment.

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HealthShare Victoria (HSV) has worked with the Department of Health (DH) and the Department of Treasury and Finance (DTF) for the statewide supply of Rapid Antigen Test (RAT) kits via a contract in place from 1 December 2021, with eight suppliers awarded, including one Australian company.

HSV was able to run the procurement rapidly using known product specifications and by coordinating the process, requirements, deliverables and approvers in line with the common goal of delivering the kits in a timely manner. Understanding the need to respond and act while also maintaining process probity has resulted in the kits being provided quickly following the product’s approval for public use at the start of November.

For non-health Whole-of Victorian Government (WoVG) mandated agencies, the new contract is forecast to achieve multi-million dollar cost reductions over the next 12 months based on initial volume estimates.

RATs are available under HSV product categories including Health Professional Supervised Point of Care Antigen Tests and Home Use Self-testing Rapid Antigen Tests.

All mandated Victorian health services are able to utilise HSV’s agreement. Eligible participants can opt in through HSV’s Access process.

HSV has also been working actively through our Procurement and Supply Chain Surety functions to ensure ongoing availability of RAT supplies for health services through the summer period and into 2022.

For more information, please contact your Customer Relationship Manager or the HSV helpdesk at helpdesk@healthsharevic.org.au or 03 9947 3900.