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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

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

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

Industry Profile Excerpts

Industry Overview

The 1,500 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 1,500 establishments that employ 76,800 workers and generate $14 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

                                  Coronavirus Update

                                  Jun 13, 2022 - Organ And Tissue Donation Bank Begins Collecting Birth Tissue
                                  • A Dayton, OH, organ and tissue donation bank has joined the growing number of organizations that collect birth tissue, which can be used for treatments like wound dressings and surgical grafts. “The tissues have been found to have properties that really help expedite the healing process such as reducing scarring, and it’s been found that it can really help with burns, diabetic ulcers, and those hard to heal wounds,” said Community Tissue Services' Birth Tissue Program Manager Lindsey West. The placenta, amniotic fluid, and umbilical cord are generally discarded as medical waste after the birthing process. “The typical donation that we’ve dealt with before it’s been after someone has died. And the unique thing about this is someone is alive and are able to share that gift with others,” said Reg Dawson, vice president of recovery services at the center.
                                  • Organs from donors who died of drug overdoses helped keep the number of U.S. liver transplants steady during the first year of the COVID-19 pandemic, according to an analysis of data from the US organ donation registry of the United Network for Organ Sharing. The percentage of livers from donors who died of overdoses rose by 26% -- from about 15% to just over 18% -- from the pre-COVID period to the COVID period. The use of drug overdose donors for all solid organ transplants increased by almost a third, from about 14% to a little over 17%.
                                  • COVID convalescent plasma -- when administered to COVID-19 outpatients within nine days after testing positive -- reduced the need for hospitalization for more than half of a study's predominantly unvaccinated outpatients. The US Food and Drug Administration (FDA) currently authorizes this plasma as a treatment option for outpatients with immunocompromising diseases or receiving immunocompromising medications, and for all patients hospitalized with early-stage COVID-19. The next step, the researchers say, is to make convalescent plasma for the outpatient treatment of COVID-19 easier to use, more efficiently administered and more accessible to those who might need it.
                                  • Blood donations have decreased 10% since the beginning of the coronavirus pandemic, according to the American Red Cross. Some hospitals may not receive even one-quarter of the blood products requested. Many facilities where blood drives are hosted weren’t open to the public, which severely impacted donations. Social distancing requirements also are cited as a key cause of the drop.
                                  • Some Massachusetts hospitals are making plans to ration blood if the need arises. The American Red Cross declared in January that the US was facing a 'blood crisis' due to plummeting donation numbers during the COVID-19 pandemic. "In this most recent wave, the hospital is very busy," said Dr Robert Makar, director of the Blood Transfusion Service at Massachuestts General Hospital (MGH). "It's providing care to lots of non-Covid patients, many of them needing lifesaving surgery. And so the pace of blood use has been consistently high." MGH officials have created the 'Blood Allocation Team' which is dedicated to managing the hospital's blood supply and making sure it is efficiently use in times of shortage.
                                  • The US Food and Drug Administration (FDA) has both limited and expanded the emergency use authorization (EUA) for convalescent plasma as a treatment for COVID-19. The agency restricted the use of high-titer COVID-19 convalescent plasma to immunocompromised patients, but stated that "these patients may be treated in outpatient or inpatient settings." (Previously, use of the once-promising therapy allowed for the treatment of any hospitalized COVID-19 patient early on in their disease course.) The FDA reviewed multiple studies to create the updated EUA and determined that convalescent plasma transfusion in hospitalized immunocompetent patients with COVID-19 is "unlikely to be associated with clinical benefit," wrote Jacqueline O'Shaughnessy, PhD, the FDA's acting chief scientist, in the updated authorization letter. "However, evidence supports a potential clinical benefit of transfusion of COVID-19 convalescent plasma with high titers of anti-SARS-CoV-2 antibodies to treat COVID-19 in patients with immunosuppressive disease or receiving immunosuppressive treatment," O'Shaughnessy added. Blood banks had moved away from collecting plasma from COVID-19 survivors as vaccination rates increase, according to the Red Cross. Early clinical trials showed that plasma doesn't help much with COVID-19.
                                  • Some people who need will need transfusions but are skeptical of the safety of COVID-19 vaccines are demanding transfusions only from the unvaccinated. "We are definitely aware of patients who have refused blood products from vaccinated donors," said Dr. Julie Katz Karp, who directs the blood bank and transfusion medicine program at Thomas Jefferson University Hospitals in Philadelphia, PA. Emily Osment, an American Red Cross spokesperson, said her organization has fielded questions from clients worried that vaccinated blood would be "tainted," or capable of transmitting components from the COVID-19 vaccines. Dr. Louis Katz, chief medical officer for ImpactLife, an Iowa-based blood center, estimated that as much as 60% to 70% of the blood currently being donated is coming from vaccinated donors. Overall, more than 90% of current donors have either been infected with COVID-19 or vaccinated against it, said Dr. Michael Busch, director of the Vitalant Research Institute, which is monitoring antibody levels in samples from the US blood supply. "I know of no one who has acceded to such a request, which would be an operational can of worms for a medically unjustifiable request," Katz told news site Salon.com.
                                  • The Food and Drug Administration (FDA) tightened its requirements for donors and recipients of COVID-19 convalescent plasma after reviewing findings from clinical trials. Some patients did not benefit from receiving convalescent plasma, according to the FDA review. Others only benefitted during specific circumstances. Those who received a COVID-19 vaccine can donate plasma if they have proof of a positive COVID-19 test result, received the vaccine after diagnosis, and are within six months after symptoms resolved, according to the updated guidance.
                                  • Some blood banks are offering a free COVID-19 antibody test with any successful blood donation. The test can indicate whether someone was exposed to the coronavirus. Vitalant, the largest independent nonprofit blood collector in the US, began testing all blood donations for antibodies on June 1, 2020. Those who donate blood at Vitalant facilities will be able to see positive or negative test results about two weeks after completing successful blood donations by logging into private online donor accounts. The Vitalant antibody test, authorized by the US Food and Drug Administration, will indicate if donors’ immune systems have produced antibodies to the virus, regardless of whether they showed symptoms.
                                  • Red Cross is testing all blood, platelet, and plasma donations for COVID-19 antibodies. Red Cross said that it's using an antibody test that the US Food and Drug Administration has authorized for emergency use, and results will be available to donors within seven to 10 days in the Red Cross Blood Donor App or donor portal.
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