1. Blood Utilization Program
Bob Karcher, Vice President, Contracting Services Praful Shah, Vice President, Clinical Diagnostic Services
Harvesting Savings
Through an Effective
Blood Utilization Program BK
As your GPO we take seriously our role in providing lower cost alternatives and cost savings opportunities for our hospital members. Those opportunities become more challenging and smaller in scope as raw materials costs rise and medical device companies continue to find creative ways to pass along new costs (like lost revenue from recalls, a lengthier FDA 510K process and federal medical device tax) As a former supply chain exec, who was charged to deliver $8-20million dollar documented savings plans each year, I know first hand that non-labor initiatives rarely carry savings expectations in the double digit range.
Praful and I believe (after spending the last 2 ½ years working through the various components) that taken in its entirety this program has tremendous potential for savings in the 15%-40% range. It can also be viewed modularly with individual components turned on for significant savings. It’s been a long slog to get all our ducks in order on the total program, but we’re very excited to outline it for you now.
2013 Saving Strategy
October 12, 2012 1

2. Total blood expense ranges from
$ M per facility depending on surgical specialties and
perioperative activity Bk
No matter the blood bank source, the total blood cost in an acute care facility - particularly the cluster of academic, specialty-intense hospitals we have in this region – is a big ticket item.

3. Key Components of an Effective Blood Management Program
Equipment and consumables to re-infuse patients perioperatively
Blood typing and hemoglobin testing equipment and software
Clinical Benchmarking Software with peer data
Clinical consulting for recommending improved blood use protocols appropriate to specialty and technology
Blood supplier willing to trade lower margins for growth
Improved donor collection, tracking, inventory, and storage equipment to optimize supply and limit waste PS
So from where we sit, we realized that developing a simple step approach designed around process flow, is the best way to develop an effective program. Such program would include
Perioperative equipment and consumables,
Laboratory testing systems,
Clinical consulting,
Evidence based protocols reflecting current techniques
CONTINUE 3 3

4. Blood Management Assessment – Required Information
Total Hospital Wide (All Service Lines)
Cardiovascular Service Line
Trauma Service Line
Orthopedics Service Line
Allogeneic Red Blood Cells
Pre-surgical Autologous Donated (PAD) Red Blood Cells
Cryoprecipitate
Plasma
Platelets
Total Number of Procedures
Number of Transfused Procedures
Key Questions
What date range are the data in the table above from: _______________________
What is your acquisition cost per unit for:
Allogeneic Red Blood Cells: $ PAD: $ Cryoprecipitate: $
Plasma: $ Platelets: $

5. Anytown Total Blood Spend
Units Transfused
Cost per Unit
Total Cost
Allogeneic RBC
28,452
$200.00
$5,690,400
PAD
376
$400.00
$150,400
Cryoprecipitate
2,031
$50.00
$101,550
Plasma
5,432
$55.00
$298,760
Platelets (Pheresis)
2,084
$500.00
$1,042,000
TOTAL
$7,283,110

6. RBC Utilization

7. Platelet Utilization

8. Plasma Utilization

9. Cryoprecipitate Utilization

10. Transfusion Rate

11. Overall Cost Reduction Estimate
Going From Current Level to…
IOL Average
IOL Best in Class
CV RBC
~$100K
~$250K
CV Platelet -
~$200K
CV Cryoprecipitate
~$10K
~$40K
CV Plasma
~$25K
Ortho Allogeneic RBC
Ortho PAD
~$50K
~$125K
TOTAL
~$740K
% of Total Hospital Blood Spend
2.7%
10.1%

12. The GNYHA Services Blood Management Program