• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
HealthRed Cross

As the Red Cross moves to a pricey blood treatment method, hospitals call for more choice

By
Julie Appleby
Julie Appleby
and
Kaiser Health News
Kaiser Health News
Down Arrow Button Icon
By
Julie Appleby
Julie Appleby
and
Kaiser Health News
Kaiser Health News
Down Arrow Button Icon
May 17, 2022, 5:00 AM ET
Add Fortune on Google for similar content.

Americans generally don’t spend much time thinking about the nation’s blood supply.

That’s mainly because the collection and distribution system is safe and efficient. But there’s a new behind-the-scenes challenge, according to some hospital officials, who fear a change in how blood platelets are handled will sharply increase the cost—and, in some cases, the number of transfusions needed—to treat cancer patients, trauma victims, and those undergoing surgery.

The concern revolves around the American Red Cross, the nation’s single-largest provider of blood products, which will exclusively use an expensive technology to reduce the risk of dangerous bacteria tainting platelets. But the move limits hospitals’ choice of less expensive testing options, which are also effective. “We are very concerned the blood collection centers have decided what is best for our patients when we are on the front line,” said Dr. Aaron Tobian, director of the transfusion medicine division at Johns Hopkins Hospital.

His concerns are echoed by some in Congress, including Rep. Earl “Buddy” Carter (R-Ga.), who in February joined 12 other congressional Republicans in signing a letter to the Department of Health and Human Services asking whether something could be done to boost hospital choices for complying with blood safety guidelines.

“This has impacted rural hospitals in particular,” which have tight budgets, he told KHN.

The switch by the Red Cross, which it expects to be fully implemented by next year, stems from a recommendation by the FDA in late 2020 to use any of three methods to reduce the risk of bacterial contamination in the blood platelets.

Under those recommendations, hospitals can buy platelets specially processed to reduce pathogens, which is the method the Red Cross and some other, smaller suppliers are moving toward. Or blood centers can test samples of each unit of platelets, looking for bacterial contamination, at least 36 hours after the blood is collected. The other option is to use a rapid test for bacteria shortly before the platelets are transfused, which occurs in addition to a primary screening for bacteria after collection.

The FDA did not rank the options. And many hospitals and blood centers already employ one or more. No test or process is 100% effective.

“Each of those methods has pluses and minuses,” said Dr. Claudia Cohn, chief medical officer for the nonprofit Association for the Advancement of Blood and Biotherapies, which represents health care providers involved with transfusion medicine. She is also a professor of laboratory medicine and pathology at the University of Minnesota.

The FDA offered the guidance because platelet transfusions are associated with a higher risk of sepsis and fatality than any other blood component, with some research estimating the chance of a serious infection at 1 in 10,000. Platelet transfusions are important to prevent or treat bleeding in some patients, such as those who have certain types of cancer, are trauma accident victims, or are undergoing surgical procedures that can result in large loss of blood.

The Red Cross, which collects about 1 million units of platelets annually, chose the processing method that reduces pathogens, the most expensive option, adding about $150 more per unit to hospitals’ costs for platelets. It precludes the use of the lowest-cost alternative, a $25 rapid test made by Verax Biomedical, because that test is not approved by the FDA for use on those processed platelets. The other testing method adds about $83 per unit.

The Red Cross, which collects and distributes about 40% of the nation’s overall blood supply, signed a five-year deal in April with California-based Cerus Corp., which provides the synthetic compound and ultraviolet illuminator used to process the platelets. Approved in 2014, it remains the only such system sold in the U.S.

Platelets are already one of the most expensive blood products with an average per-unit price of $500.

Pathogen reduction could translate into six-digit additional costs to small hospitals’ annual expenses, and “$1.5 million to $3 million” to what large academic medical centers spend each year on platelets, said Tobian, based on a research paper he co-authored.

Some of that might be passed along to patients—if they pay a percentage of their treatment costs, for instance, or in higher insurance premiums.

But hospitals may also have to eat some of the additional expense.

The financial effect on the Red Cross and other blood suppliers is unclear. Organizations that supply blood are seeing declining donations, and operate on thin margins, although platelets tend to be one of their most profitable products. Pathogen reduction allows the Red Cross to charge more for platelets, but it must also buy the processing system from Cerus.

In its most recent IRS filings, covering the financial year that ended June 30, 2021, the Red Cross said its “biomedical services” brought in $1.89 billion in revenue, but cost $1.83 billion, a $49 million difference.

Red Cross spokesperson Jenelle Eli said in an email that is “not a revenue number” but would not give more specifics. In some years, Red Cross’ costs exceed revenue, she wrote, and in others, the opposite is true.

She also would not provide details on the cost of purchasing the system from Cerus, whose chief medical officer joined the company after holding a similar position at the Red Cross.

Pathogen-reduced platelets, while requiring a higher upfront cost, are a better value for hospitals because they reduce bacterial risk “while also mitigating other pathogen threats, like parasites, viruses and even pathogens we may not know about yet,” wrote Jessa Merrill, American Red Cross Biomedical Services communications director, in a separate email. It’s a “ready-to-use product that doesn’t require any testing or further manipulation.”

Hospitals say the other testing methods outlined by the FDA have advantages, also, including a longer shelf life for platelets. Platelets that are tested for bacteria can be used for up to seven days, as compared with the five-day life of the processed platelets.

“We have to be very efficient,” said Kazem Shirazi, a technical specialist in transfusion services at George Washington Hospital in Washington D.C., who spends part of his days juggling requests from surgeons for a supply in the operating rooms with the need to have a supply on hand in the emergency room.

The reduced time frame for the platelets his hospital buys from the Red Cross means “we end up wasting more,” Shirazi said.

Patients probably won’t know what method is used on the platelets they receive, although research indicates the more expensive option can sometimes increase the amount of product needed.

The process is useful to kill pathogens, but also “makes for a platelet that doesn’t do its job as well,” said Cohn.

A meta-analysis of 12 studies of cancer patients who received pathogen-reduced platelets found no increased risk of death or bleeding. However, it did show an increase in the “number of transfusions required.”

And that’s an issue. Tobian at Johns Hopkins said physicians like to keep the number of transfusions to a minimum: “The safest transfusion is the one that can be avoided.”

Safety was another concern raised by Rep. Carter during an April 27 House Energy and Commerce Committee hearing. He mentioned three cases of platelet-linked sepsis since 2019. Those platelets had been processed with the pathogen-reduction method, the FDA said in a December memorandum.

But Red Cross spokesperson Merrill dismissed Carter’s example, saying that those cases “were not due to a failure of the pathogen reduction/inactivation, but instead due to a post-manufacturing issue.”

Some platelet contamination cases—in both processed or tested platelets—might involve tiny leaks or other damage in storage containers, suggested a paper published last year in the journal Transfusion. Two Cerus employees were among the authors.

The view of the processing method may depend on the size of the hospital. Smaller hospitals, which don’t have trauma centers or large cancer programs, use far fewer platelets each year than large academic centers, which might need 10,000 or more units annually. “Smaller centers love the pathogen-reduced platelets because they don’t have to mess with it and it’s easy and safe to use,” said Cohn.

But academic hospitals, which do a lot of transfusions, “are really frustrated,” she said. “If their blood suppliers are only willing to offer one kind, they are constrained.”

KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Authors
By Julie Appleby
See full bioRight Arrow Button Icon
By Kaiser Health News
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

apes
HealthAnimals
Scientists tickled monkeys to find if they have the same giggles as humans — and they do
By Adithi Ramakrishnan and The Associated PressJune 25, 2026
5 hours ago
Tru Niagen
HealthDietary Supplements
Tru Niagen Review (2026): Our Honest Thoughts
By Emily PharesJune 25, 2026
9 hours ago
ll
Economysummer
Deviled eggs, seltzer and a burger you can’t quit: The GLP-1 crowd is (halfway) reinventing the American BBQ
By Nick LichtenbergJune 25, 2026
14 hours ago
A pedestrian walks past a Gucci luxury fashion store at a shopping district on June 24, 2026, in Shenzhen, Guangdong Province, China.
RetailLuxury
Rich consumers taking GLP-1s are rebuying their wardrobes and eating smaller, fancier dishes—it’s a factor saving the luxury sector right now
By Eleanor PringleJune 25, 2026
17 hours ago
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
SuccessBillionaires
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
By Orianna Rosa RoyleJune 25, 2026
20 hours ago
How ‘Ozempic face’ is pushing Gen X, already the biggest Botox and filler consumers, to the facelift table a decade early
HealthGen X
How ‘Ozempic face’ is pushing Gen X, already the biggest Botox and filler consumers, to the facelift table a decade early
By Mia OsmonbekovJune 24, 2026
1 day ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
20 hours ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
2 days ago
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
Success
Ikea’s billionaire founder was so frugal that he bought clothes from flea markets and took free salt and pepper from restaurants
By Orianna Rosa RoyleJune 25, 2026
20 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
3 days ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
2 days ago
Current price of silver as of Thursday, June 25, 2026
Personal Finance
Current price of silver as of Thursday, June 25, 2026
By Joseph HostetlerJune 25, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.