Case Study

Transforming Viral Load Testing through a Strategic Procurement Strategy

Supply Chain
A woman in a lab coat tests samples

The Challenge

Effective and efficient viral load testing is critical to diagnose and initiate treatment for people living with HIV (PLHIV). Low- and middle-income Countries (LMICs) with a high HIV burden faced underutilized diagnostic instruments that were poorly maintained, and lacked a coordinated network strategy, with inconsistent service contracts further compounding operational inefficiencies. Further, the U.S. Government sought to better leverage its market position as a primary procurement agent of laboratory equipment, reagents, and consumables to LMICs as procurement efforts were fragmented with significant cost variability across countries.

Our Solution

All-Inclusive Rental Agreements for Viral Load Testing

Chemonics worked with global diagnostic suppliers and country service providers to broker reagent rental-based agreements that include service and maintenance in contract terms so that the country pays for tests, services, and instruments on an all-inclusive pricing basis. By shifting responsibility and maintenance risk to the supplier, this commercial approach increased the reliability of viral load testing and reduced testing turnaround times for results.

A woman prepares a lab sample for testing.

The Impact

Significant cost savings on laboratory testing.

By innovating new-to-the-market viral load/early infant diagnostic all-inclusive framework agreements, Chemonics achieved several benefits across the global health laboratory network it manages for the U.S. Government:

  • Achieved savings of nearly $140 million since 2020
  • Reduced price per test per patient by $2-3, enabling countries to procure 20-25% more tests with the same amount of funding
  • Established laboratory connectivity, enabling automated reporting of instrument operational data to the Global Viral Load Dashboard that currently links more than 320 instruments
  • Implemented all-inclusive service-level agreements in high-volume PEPFAR countries
  • Negotiated terms and pricing available to procurers in more than 40 countries
  • Reagent rentals have 34% less down time compared to those under traditional, standalone service contracts.
A couple holds a baby in their arms.