Blood and Organ Banks

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,691 blood and organ banks in the US collect, store, and distribute blood and blood products, organs, and tissues. Blood banks and organ banks are non-profit organizations. Tissue banks and plasma banks can operate as for-profit entities. Blood and organ banks may have contracts with hospitals, healthcare providers, pharmaceutical companies, or other organizations.

Extremely Perishable Inventory

Blood, organs, and tissue are extremely perishable and require specialized removal processes and storage conditions.

Limited Sources of Supply

Supply of blood, organs, and tissue is dependent on the availability of donors, which is well beyond the control of the industry.

Industry size & Structure

The average blood or organ bank employs 48-49 workers and generates $9 million in annual revenue.

    • The blood and organ bank industry consists of 1,691 establishments that employ 82,800 workers and generate $15.5 billion annually.
    • Non-profit organizations account for 52% of establishments and about 71% of revenue. For-profit organizations account for 48% of establishments and about 29% of revenue. Blood banks and organ banks are non-profit organizations. Tissue banks and plasma banks can operate as for-profit entities.
    • The industry is concentrated; the top 50 companies account for over 84% of industry revenue.
    • Large organizations include the American Red Cross, America's Blood Centers, and the Musculoskeletal Transplant Foundation. In the US, 58 non-profit organ procurement organizations (OPO) coordinate the organ donation process.
                                  Industry Forecast
                                  Blood and Organ Banks Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 7, 2024 - Firms Raise Prices
                                  • Blood and organ banks slightly increased their prices during 2023 to match increasing demand for their services. While the National Organ Transplant Act makes the act of buying and selling organs and tissues illegal, operators can charge fees for collecting, shipping, processing, marketing, and implanting them. Employment began rebounding in August 2023 from a first-half slump and hit a 10-year high in November. Growth in average wages for nonsupervisory employees has reversed slightly after hitting a 2023 peak in August.
                                  • The world’s first partial heart transplant has resulted in functioning valves and arteries that grow along with the young patient a year later. The previous standard of care used non-living valves that do not grow along with the child, requiring frequent replacement via surgical procedures that carry a 50% mortality rate, according to the Futurity news site. The innovation has paved the way for a domino heart transplant, where one heart is able to save two lives. During a domino heart transplant, a patient who has healthy valves but is in need of stronger heart muscle receives a full heart transplant; their healthy valves are then donated to another patient in need, creating a domino effect.
                                  • The US Congress has passed legislation that opens the national Organ Procurement and Transplant Network to other groups through a competitive contract process. The system has only ever been managed by the nonprofit United Network for Organ Sharing, which has drawn criticism for its handling of organs, long waitlists for transplants, and the number of deaths among people waiting. The contracts would be overseen by the Health Resources and Services Administration, under the US Department of Health and Human Services. The bill has been sent to President Biden, who may sign it into law.
                                  • Researchers are working on ways to create synthetic blood that would reduce continual shortages of donated blood. Bioengineer Susan Shea, PhD, says that the holy grail for transfusion is a dried artificial whole blood. The synthetic blood that Shea and a nationwide team of researchers is working on looks like a powder and has the same components as human blood. It will not have to match the patient’s blood type and unlike donated blood that has a shelf life of up to 42 days, this synthetic blood could last months, even years. It does not need to be refrigerated so it can be used not only in hospitals, but ambulances, rescue helicopters and war zones – places where it’s difficult to have blood readily available. “I don’t know that we can guarantee that this product alone will eliminate the blood shortage, but it’s certainly a very important step forward,” Shea emphasizes.
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