Maria Shepherd , Data Decision Group10.16.13
It is difficult to imagine where surgical procedures would be today if it weren’t for the blood banking industry. Although minimally invasive procedures have reduced the need for blood transfusions, trauma surgery, orthopedic procedures and general surgery all contribute to maintaining the need for this essential fluid. Blood banking is an undersupplied commodity, and strong demand makes the need for the services of this industry continue to escalate.
Why It’s Important: High Demand and Low Supply
Blood and tissue backing are big business. The per-unit cost of blood contributes $522-$1,183 to each surgery where it is needed, warranting improved conservation and cost containment strategies.1 According to IBISWorld Market Research, the combined blood and tissue banking industry grosses $9.5 billion annually.2 Demand for blood products will continue to increase as will technological advances driven by industry. Growth is expected through 2017, advanced by healthcare reform, an aging population, and the growing frequency and global awareness of manmade or natural disasters.
High Demand for a Commodity Product
People older than 65 use 43 percent of all donated blood. The demand for blood and blood products is expected to increase as the population ages.3 In addition, 25 percent of all blood products are used to treat cancer patients.
Some orthopedic surgical procedures, such as total joint arthroplasty and spinal fusion are associated with significant blood loss; and the need for allogeneic blood transfusions, despite preoperative autologous blood donation and re-transfusion.4,5
Improved Processes and Cost Savings through Industry Innovation in Blood Banking
Leading the way is Braintree, Mass.-based Haemonetics Corp. At the J.P. Morgan healthcare analyst meeting, held in San Francisco, Calif., in January, Haemonetics President Brian Concannon presented the company’s strategic goals to improve outcomes and lower costs in the blood management business.
A core part of the firm’s strategy addresses inefficiencies in the whole-blood collection (WBC) process. Haemonetics has become a leader in this market by addressing the plasma supply market. The company has grown to a reported 70 percent market share by streamlining the commercial plasma supply chain, driving cost efficiencies that improve yields and lower the cost per unit collected.
Haemonetics’ next growth target is the WBC process. The company reports that of the 60 million red blood cell units collected annually, 58 million (97 percent) are manual collections. This inefficient system is difficult to implement in remote locations (disasters, war zones), has a lengthy and cumbersome donation process, uses limited automation, and requires manual keying of collection data.
In response, Haemonetics is transforming the manually-intensive WBC process through its Arm-to-Arm Solution, a process in development to streamline and automate the entire blood management system, from donor blood collection to delivery to the patient. This will be accomplished with a wireless data automation package, a novel storage system and an automated WBC collector, all planned for launch between 2013 and 2015. Blood centers will benefit from this new technology by improving donor retention, lowering costs, gaining higher yields, increasing efficiency and improving blood collection worker compliance.
Lower Cost for the Healthcare System
How is your company planning to assist the healthcare system in improving efficiencies and lower costs? What systems in your medical specialty or adjacent to it need improvement? There is profit in providing improved financial outcomes in all of healthcare. How will you identify them?
References:
Maria Shepherd has 20 years of leadership experience in medical device/life-science marketing in small startups and top-tier companies. After her industry career—including her role as vice president of marketing for Oridion Medical, where she helped boost the company valuation prior to its acquisition by Covidien; director of marketing for Philips Medical; and senior management roles at Boston Scientific Inc.—she founded Data Decision Group. Data Decision Group (www.ddecisiongroup.com) provides whitespace research and critical data to support medical device product development. The firm performs market research, evaluates new technologies and provides marketing services and human factors usability testing. Shepherd has taught marketing and product development courses and recently was appointed to the board of the MSBiV Medtech Investment Committee. She can be reached at (617) 548-9892 or at mshepherd@ddecisiongroup.com.
Why It’s Important: High Demand and Low Supply
Blood and tissue backing are big business. The per-unit cost of blood contributes $522-$1,183 to each surgery where it is needed, warranting improved conservation and cost containment strategies.1 According to IBISWorld Market Research, the combined blood and tissue banking industry grosses $9.5 billion annually.2 Demand for blood products will continue to increase as will technological advances driven by industry. Growth is expected through 2017, advanced by healthcare reform, an aging population, and the growing frequency and global awareness of manmade or natural disasters.
High Demand for a Commodity Product
People older than 65 use 43 percent of all donated blood. The demand for blood and blood products is expected to increase as the population ages.3 In addition, 25 percent of all blood products are used to treat cancer patients.
Some orthopedic surgical procedures, such as total joint arthroplasty and spinal fusion are associated with significant blood loss; and the need for allogeneic blood transfusions, despite preoperative autologous blood donation and re-transfusion.4,5
Improved Processes and Cost Savings through Industry Innovation in Blood Banking
Leading the way is Braintree, Mass.-based Haemonetics Corp. At the J.P. Morgan healthcare analyst meeting, held in San Francisco, Calif., in January, Haemonetics President Brian Concannon presented the company’s strategic goals to improve outcomes and lower costs in the blood management business.
A core part of the firm’s strategy addresses inefficiencies in the whole-blood collection (WBC) process. Haemonetics has become a leader in this market by addressing the plasma supply market. The company has grown to a reported 70 percent market share by streamlining the commercial plasma supply chain, driving cost efficiencies that improve yields and lower the cost per unit collected.
Haemonetics’ next growth target is the WBC process. The company reports that of the 60 million red blood cell units collected annually, 58 million (97 percent) are manual collections. This inefficient system is difficult to implement in remote locations (disasters, war zones), has a lengthy and cumbersome donation process, uses limited automation, and requires manual keying of collection data.
In response, Haemonetics is transforming the manually-intensive WBC process through its Arm-to-Arm Solution, a process in development to streamline and automate the entire blood management system, from donor blood collection to delivery to the patient. This will be accomplished with a wireless data automation package, a novel storage system and an automated WBC collector, all planned for launch between 2013 and 2015. Blood centers will benefit from this new technology by improving donor retention, lowering costs, gaining higher yields, increasing efficiency and improving blood collection worker compliance.
Lower Cost for the Healthcare System
How is your company planning to assist the healthcare system in improving efficiencies and lower costs? What systems in your medical specialty or adjacent to it need improvement? There is profit in providing improved financial outcomes in all of healthcare. How will you identify them?
References:
- Shander A., Hofmann A., Ozawa S., Theusinger O., Gombotz H., Spahn D. “Activity-based Costs of Blood Transfusions in Surgical Patients at Four Hospitals.” Transfusion. April 2010, Volume 50, Issue 4, Pages 753-765
- IBISWorld Industry Report 62199, Blood & Organ Banks in the U.S., October 2012
- www.bloodbook.com/facts.html
- Tobias JD. “Strategies for minimizing blood loss in orthopedic surgery.” Seminars in Hematology. 2004, 41(1 Suppl 1), Pages 145-156
- www.pfiedler.com/ce/1156/1156.pdf
Maria Shepherd has 20 years of leadership experience in medical device/life-science marketing in small startups and top-tier companies. After her industry career—including her role as vice president of marketing for Oridion Medical, where she helped boost the company valuation prior to its acquisition by Covidien; director of marketing for Philips Medical; and senior management roles at Boston Scientific Inc.—she founded Data Decision Group. Data Decision Group (www.ddecisiongroup.com) provides whitespace research and critical data to support medical device product development. The firm performs market research, evaluates new technologies and provides marketing services and human factors usability testing. Shepherd has taught marketing and product development courses and recently was appointed to the board of the MSBiV Medtech Investment Committee. She can be reached at (617) 548-9892 or at mshepherd@ddecisiongroup.com.