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COVID-19 testing firm leaves SF after investigators said sites fueled drug activity

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SAN FRANCISCO – A COVID-19 testing company has ceased operations in San Francisco after officials said an investigation revealed cash payments given to those being tested had facilitated drug activity.

According to a statement by City Attorney David Chiu's office, Gentech has agreed to cease all virus testing operations in the city following conversations with city officials and enforcement efforts.

"At this time, almost four years into the pandemic, the public can rest assured that the vast majority of testing operators in San Francisco are legitimate and provide a much-needed public health service. However, the City has put a health order in place make sure we have the legal tools necessary to weed out any bad actors," Chiu said.

Operating out of green tents, Gentech offered COVID-19, flu and RSV testing. While officials noted issues over a lack of personal protective equipment and compliance with sanitation requirements, the sites also paid members of the public $5 in cash for every test taken.

"Many of the testing tents operated near open air drug markets, and the cash payments appeared to facilitate drug sales and activity," the city attorney's office said.

Mayor London Breed said, "Ensuring people have access to public health resources is critical, but we cannot let others use this as an opportunity to facilitate and worsen the drug crisis on our streets."

Officials with the city's Department of Public Health and San Francisco Police cracked down on the company after Health Officer Dr. Susan Philip issued a health order setting minimum infection control and safety standards for sites that collect specimens for COVID-19, flu, RSV or other viruses.

The health order also required specimen collection sites to partner with a trusted community entity such as a government agency, school or healthcare provider.

"Our officers worked with the DPH to identify operators in violation of the city's health order before citing them and seizing their property," Police Chief Bill Scott said. "Since Gentech has ceased operations, less money is being funneled into the illicit drug markets, and the public has more right-of-way in our downtown corridor."

Gentech provided the following response:

Gentech operates a state-licensed, federally certified, and privately accredited clinical laboratory. Since the outbreak of the COVID-19 pandemic, the company has proudly served the COVID-19 testing needs of San Franciscans.

Recently, Gentech temporarily paused its COVID-19 specimen collection activities in San Francisco to evaluate other testing services that can be provided in the city. Gentech made this decision voluntarily after proactively consulting with the City Attorney's Office. Media reports that Gentech has been "shut down" or "ousted" from San Francisco are not accurate.

Further, we are dismayed by the allegations that Gentech's collection sites are in any way tied to San Francisco's illicit open drug markets. These false, defamatory claims are meritless.

Gentech conducts its business in accordance with applicable laws and regulations, including a recently adopted rule by the San Francisco health officer regulating COVID-19 specimen collection sites. We will continue to cooperate with city officials in our mission to make testing services widely and conveniently accessible to the public.

Information about COVID-19 testing in San Francisco, including where to find free or low-cost tests, can be found on the city's website.

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