The U.S. Health and Human Services Division Wednesday awarded two contracts worth over $1 billion to build ventilators needed to treat severely sick coronavirus sufferers and plans to declare five additional contracts later this week.
HHS awarded automaker General Motors a contract for $489 million to make 30,000 ventilators, while it also introduced a $646.7 million contract given to Dutch health technology company Philips to manufacture 43,000 ventilators by year-end, along with 2,500 ventilators by the end of May.
GM will work with Ventec Life Systems to ship the 30,000 ventilators under the contract to the U.S. government by the end of August, with deliveries of the first 6,132 machines to happen by June 1. GM is set to start manufacturing in Indiana next week.
Last week, U.S. President Donald Trump issued an order beneath the Protection Manufacturing Act to facilitate the provision of supplies to supply ventilators to Philips, Common Electrical, Hill-Rom Holdings, Medtronic, ResMed and Vyaire Medical Inc. HHS plans to announce contracts with these companies later this week, the company mentioned.
GM VP Gerald Johnson informed Reuters final month the automaker is spending tens of thousands of dollars on retooling prices because it produces the ventilators, and that if provider retooling prices are included, full retooling prices had been within the lots of hundreds of thousands of dollars.