Maximizing the value of manual whole blood (WB) collections makes good business sense and is a better use of precious renewable resources. By producing the essential platelet component from manual WB collections, blood centers can help improve their business model by converting these platelets into a higher value platelet product, AcrodoseSM Platelets. Along with lower production costs and higher margins, making Acrodose Platelets is good for our planet by reducing your carbon footprint, along with being good for your customers by providing a lower cost alternative to apheresis platelets.
In this case study Blood Center ‘A’:
- Produces 10,244 apheresis platelets
- Imports 1,440 apheresis platelets
- Produces 25,800 platelet concentrates (not being made into Acrodose Platelets), and
- Produces 2,400 Acrodose Platelets
If Blood Center ‘A’ reduced their apheresis production by 10% and made several small adjustments to their platelet production strategy, the impact to the bottom line could be significant. Taking a closer look:
- Reduced production costs:By reducing their apheresis production by 10%, from 10,244 units to 9,220 units per year, they will need to make up the platelet shortfall by shifting as much as 10,000 WB collections towards making platelets. The advantage is that they would realize reduced production costs (approximately $100 per dose based on the analysis below) while continuing to produce the same number of platelet doses overall (20,535 platelet doses) to meet current platelet demand. This would also have the following effects:
- Reducing platelet importing
- By producing the same number of therapeutic doses overall, it would allow them to reduce importing (1,440 units) to zero, which would have a direct effect on reducing costs and increasing margins.
- Increasing margins
- When they took the 25,800 platelet concentrates being made today and made them into Acrodose Platelets, they were able to produce a higher value (higher margin) product by shipping as a pre-pooled product (not as individual PC's).
This table illustrates the “before and after” effects of making such adjustments and resulting in a 19% reduction in costs, and 12% margin gain overall to this blood center.Click
to view larger image.
The Business Case for Acrodose Platelets
In addition to being a higher margin product, Acrodose Platelets can help your blood center improve their business model. Here are five additional strategies for your blood center to consider.
- Smooth out the peaks and valleys of platelet demand.
Utilize the flexibility of Acrodose Platelets to:
- Produce a more consistent amount of apheresis platelets. Then you can backfill your platelet demand with Acrodose Platelets.
- Lower your platelet outdate rate. For a blood center producing about 5,000 therapeutic doses of platelets, every 1% decrease in the platelet outdate rate translates into greater than $150,000 annual savings.
- Increase your revenues with minimal increase in expenses.
Because there is essentially no financial risk in adopting Acrodose Platelets vs. expanding apheresis platelet production, which have fixed costs built in, you can increase your opportunity for platelet export using Acrodose Platelets. For easier market acceptance, you can initially focus on areas that are already using WB derived platelets, or Acrodose Platelets.
- Reduce overhead costs associated with apheresis platelets.
Acrodose Platelets have a comparable (or greater) margin than apheresis platelets. So once you have established Acrodose Platelets, you could consider reducing overhead costs associated with apheresis, such as fixed sites and leased equipment.
- Protect (or expand) your red cell business.
A high margin on Acrodose Platelets should allow you to lower red cell pricing that can secure current business and/or allow for RC business expansion
- Lower overall collection costs.
Collect more WB in lower collection cost areas and produce Acrodose Platelets. Export these Acrodose Platelets to meet platelet demand in higher collection cost areas.
Good for the Planet
By using WB derived platelets, you maximize the use of a scarce resource. You also help reduce your carbon footprint for the community as you save energy in apheresis donor transport, time off work, energy to manufacture and transport apheresis devices and disposables, as well as energy to operate apheresis devices.
Good for Your Customer
Acrodose Platelets provides your blood center with a new lower cost, high value alternative platelet product for your hospital customers. Given the current economic environment, where cost containment is now an absolute, consider these facts.
- Acrodose Platelets provide an equivalent therapeutic dose of platelets, and utilize the same bacteria detection methodology to test the final product as does apheresis platelets.
- The average selling price in the U.S. for a therapeutic dose of Acrodose Platelets is about $75 - $90 less than apheresis platelets.
Therefore consider the following scenario and see how switching to Acrodose Platelets provides a cost benefit to your hospital customer.
Assume a population of 1 million. This population requires about 50,000 red cells and 5,000 adult platelet doses annually.
- Using apheresis platelets, this incurs a hospital acquisition cost of $2,625,000.
- Using Acrodose Platelets, this cost is $2,175,000.
The difference is $450,000 (17%) for an equivalent product which represents a significant cost savings to the hospital.