Gov. Gavin Newsom visited the Southland on Friday to unveil a
new COVID-19 testing lab in Valencia that will boost California’s
testing capacity, reduce turnaround time for results and create
hundreds of jobs.
The $25 million facility, at 28545 Livingston Ave., was
converted for its new use by diagnostics company�PerkinElmer under a contract
with the state. It will begin processing tests in November. It’s
expected to handle up to 150,000 tests per day by March with a
turnaround time of 24 to 48 hours.
The additional testing capacity will allow California to better
serve schools, healthcare providers and communities of color, which
are at higher risk of contracting the virus. It comes just as flu
season arrives and the need for testing is expected to spike
statewide because the symptoms of COVID-19 and the flu are
similar.
Figures released Friday, Oct. 30 by the California Department of
Public Health show 4,014 new COVID cases, bringing the state’s
total to nearly 917,000 cases.
Los Angeles County, one of the hardest-hit areas of the state,
reported 26 deaths and 1,296 new cases of COVID-19 on Friday.
700 jobs at full capacity
The lab, housed in Valencia Commerce Center, has created 300 new
jobs so far and is expected to employ about 700 workers when it
reaches full capacity.
The
$25 million facility on Livingston Avenue was built in conjunction
with diagnostics company PerkinElmer and will begin processing
tests in November. (Photo courtesy of governor’s office)
“Earlier in this pandemic, our ability to test Californians
for COVID-19 and get results quickly was hampered by supply chain
challenges and overwhelmed laboratories – so we built our own
supply chain and our own lab with PerkinElmer,†Newsom told those
gathered at Friday’s
unveiling.
Cutting-edge technology
The lab will utilize polymerase chain reaction (PCR) diagnostic
testing. Sometimes referred to as “molecular photocopying,†the
process is a fast and inexpensive technique used to “amplify,â€
or copy, small segments of DNA. It has proven useful for the
detection of bacteria and viruses.
California’s contract with Waltham, Massachusetts-based
PerkinElmer includes provisions that enable the company to adopt
new technology at a lower price point. The state
plans to leverage technologies with a variety of other laboratory
partners to ensure testing capabilities are as diverse as
possible.
The state announced its partnership with PerkinElmer 10 weeks
ago and it took just eight weeks to get the 134,000-square-foot
facility up and running.
“We are pleased they chose it,†said Holly Schroeder,
president and CEO of the Santa
Clarita Valley Economic Development Corp.
Schroeder said the company identified a building in Valencia
Commerce Center that already had a significant amount of clean
space from a former tenant.
“That helped them get a jump-start,†she said.
Newsom said the new lab is needed to keep pace with
California’s COVID-19 situation.
“We recognized a number of months ago that if we continued
down the path we were on we simply would not meet the demand, the
need and the desire by our epidemiologists and our health partners
all across the state of California to provide for the ample,
accessibility, quality and equity of our testing protocols,†he
said.
Newsom noted that 24 states have experienced record high cases
of COVID-19 over the past week.
“This lab is happening at the right time,†he said.
Lower cost
The per-test cost to the state will be $30.78 once the lab
reaches full capacity. Those costs will be shared with health
insurers and some employers. For context, Medicare and Medicaid
reimburse at roughly $100 per test, while the average cost of a
COVID-19 test ranges from $150 to $200.
To support the lowest costs to taxpayers, California will enter
into a contract for third-party billing services to recoup costs
from health insurance companies or other payers.
Newsom toured the lab along with California Health and Human
Services Secretary Mark Ghaly and Government Operations Secretary
Yolanda Richardson.
“When you’re exposed, when you’re concerned — or even
when you’re not — having the availability of testing is that
step that helps us understand where transmission is across the
state,†Ghaly said. “Every county is a little different than
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