The US Department of Health and Human Services has signed 10 contracts with ventilator manufacturers to secure 187,431 critical care and pneumatic ventilators by the end of 2020. The 10 contracts will cost HHS nearly three billion dollars ($2,907,380,000).
The contracts are rated under the Defense Production Act, signed by President Trump on Mar 18 with additional guidance on Mar 27 and Apr 2.
“We are now the king of ventilators, we have so many ventilators,” President Trump said during an Apr 19 White House Coronavirus Task Force briefing.
The ventilators will be delivered in installments, with more than 41,000 of the total 187K devices being produced or acquired by the end of May, according to HHS.
The contracts are with the following companies:
|Companies||Contract||Total Ventilators||Final Deadline|
|GE Healthcare, Ford Motor||$336 M||50,000||July 13|
|GE Healthcare||$64.1 M||2,410||June 29|
|General Motors, Ventec||$489.4 M||30,000||Aug 31|
|Hamilton Medical||$552 M||14,115||July 3|
|Hillrom||$20.1 M||3,400||July 13|
|Medtronic||$9.1 M||1,056||June 22|
|Philips||$646.7 M||43,000||Dec 22|
|ResMed||$31.98 M||2,550||July 13|
|Vyaire||$407.9 M||22,000||June 29|
|Zoll||$350.1 M||18,900||July 3|
Additional details on the contracts are available below:
GE HEALTHCARE & FORD MOTOR CO
GE Healthcare and Ford Motor Company have signed a contract with HHS to deliver 50,000 GE/Airon Model A-E ventilators by July 13. HHS will pay the companies $336 million.
The GE/Airon Model A-E ventilator uses a design that operates on air pressure without the need for electricity, addressing the needs of most COVID-19 patients. According to a Ford press release, it will be a combination of Ford manufacturing, GE Healthcare’s clinical expertise, and a GE-license for the ventilator design from Airon Corp.
Airon currently produces three Airon pNeuton Model A ventilators per day in Melbourne, Fla. At full production, Ford plans to make 7,200 Airon-licensed Model A-E ventilators per week.
Ford expects to produce 1,500 by the end of April, at least 12,000 by the end of May, and the full order of 50,000 by July 4.
General Electric has signed a $64.1 million contract with HHS to produce 2,410 ventilators. The company will deliver 112 devices by May 4th, followed by 736 by June 1, and complete the order by June 29.
In the US the company markets the Carescape R860 critical care ventilator.
GENERAL MOTORS & VENTEC LIFE SYSTEMS
On Apr 8, HHS contracted General Motors (GM) to produce 30,000 ventilators for the Strategic National Stockpile at a cost of $489.4 million, according to the agency. The contract was the first for ventilator production rated under the Defense Production Act.
GM, which is working with Ventec Life Systems, began mass production of the V+Pro critical care ventilator and has already delivered the first shipment to hospitals in Illinois.
According to GM, more than 600 ventilators will be shipped in April, almost half the order will be filled by the end of June and the full order will be completed by August 30, 2020, with the capacity to build more ventilators after August if needed.
HHS signed a $552 million contract with Hamilton Medical, according to the agency. Hamilton will deliver 14,115 ventilators produced by July 3. Eight hundred fifty of the devices will be delivered by May 8, followed by 4,404 by May 22 and the balance by July 3.
To complete the contract Hamilton has partnered with General Motors to launch an all-new production line for critical care ventilators near the company’s US offices in Reno, Nevada.
Production in Reno will focus on the Hamilton-T1 critical care ventilator, with production of the first ventilators scheduled for the end of April.
Hillrom has signed a contract with HHS to produce 3,400 ventilators at a cost of $20.1 million. The company will deliver 400 devices by June 1 and the total of 3,400 ventilators by July 13.
The company recently announced a fivefold ramp up of manufacturing on its Life2000 noninvasive ventilator. The Life2000 can be used in the ED and other hospital areas to free up capacity for invasive ventilators for the most serious COVID-19 patients, according to the company.
HHS signed a $9.1 million contract with Medtronic for 1,056 ventilators. Two hundred will be produced by May 4, followed by 678 by June 1 and the balance of the order June 22.
The company also recently received an FDA emergency use authorization for its Puritan Bennett 560, a compact ventilator currently in use in 35 other countries.
Philips Healthcare has agreed to a $646.7 million contract with HHS to deliver 43,000 ventilators to the Strategic National Stockpile by December 2020. The company will deliver 2,500 ventilators by May 31, and the balance of 43,000 ventilators by December 31.
According to ProPublica, HHS officials said the government is purchasing the Trilogy EV300 ventilator. The agreement was the second for ventilator production rated under the Defense Production Act.
HHS has ordered 2,550 ventilators from ResMed at a price of $31.98 million. ResMed will deliver 400 devices by May 4, another 1,150 by June 1, and the balance by July 13.
In the US, ResMed markets the Astral 100 and Astral 150 ventilators, with invasive and noninvasive support.
Vyaire Medical will manufacture 22,000 ventilators for HHS at a price of $407.9 million. A total of 1,200 ventilators will be delivered by May 4, another 9,100 by June 1, and the balance by June 29.
Vyaire will produce its LTV2 2200 ventilators, the latest device in its LTV series of ventilators. The LTV2 received an emergency use authorization from the FDA and is already in use in Japan.
Zoll’s contract, at a price of $350.1 million, is for 18,900 ventilators produced by July 3, with 1,010 by May 4 and 4,410 by June 1. Zoll currently manufactures two ventilators: the Z Vent for the EMS and hospital markets, and the EMV+.
The company recently announced plans to increase its manufacturing capacity to 10,000 ventilators per month, which would be nearly a 25-fold expansion in production.
Image: Sarah Stierch (CC BY 4.0)