OT: American Red Cross Has A Competitor?

[Peter Polack]

I'm a quasi-regular blood donor to the Red Cross. As far as I knew, they were the only game in town and why not-there's no reason for competition with this non-profit as there's no money to be made.

So my friend tells me he recently donated blood at a new non-profit blood donation center not affiliated with the Red Cross.

What's the motivation behind creating and paying rent, etc. for all the expensive infrastructure for this non-profit blood collection business?

I assumed that the Red Cross model- volunteers for some of the blood drive services, freely loaned donation locations, donated food, etc. was by necessity.

My friend was even given a $10 gift card for Starbucks for donating. True; sometimes the Red Cross has such perks but not that often.

My concern is this new blood donation center is charging hospitals higher prices for donated blood, or there is some other hidden for-profit scheme going on that I don't see.

Help me see what I'm missing, other than my blood!

[htwoopup]

I can’t speak to the business side of it, but I have often wondered the same thing.

Here in NYC the major blood donor organization is the New York Blood Center. The Red Cross also does it but is much much smaller in blood collection than NYBC.

I know that NYBC has been on of the leading blood research facilities and that may be why they are allied with so many hospitals.

But I have long wondered, like you, about how having multiple sets of infrastructure makes sense. The only thing I could ever come up with is that the outreach type of blood drives can make it easier to get more people to donate but that doesn’t answer the backend infrastructure costs unless it’s shared in some way.

[j44ke]

OT thread moved to OT section.

How does the American Red Cross rate as a non-profit? I do know the American Red Cross and the International Red Cross are two separate entities.

I know there are also many different uses for blood, not just transfusions. So reading the fine print of any blood bank operation would be advisable.

I think pay-for-blood operations have been around for a lot time. They are/were classically a place to go for those in need of a few dollars.

[robin3mj]

Charity navigator gives them 3/4 stars which is kind of my break point for donating money. We tend to focus our giving on World Central Kitchen (Jose Andres) and Doctors Without Borders, both four stars on this analysis, and some other specific causes.

https://www.charitynavigator.org/ind...view&cpid=8077

I give blood through our local hospital system. Inova.

[Todd Amunrud]

My understanding is there have been other donation centers for decades. This center has been in Duluth, MN since I was a student in the late 80’s(maybe a different name then). Had some classmates that donated to get some extra cash.

https://www.cslplasma.com/center/mn/613-duluth

[vertical_doug]

Blood Centers tend to distribute the blood they collect to the local area, America Red Cross is national.

Both Non-profit distribute about 90% of their funds. However, for the NYBC, the President, CEO of NYBC receives 1.7mm in salary. The Head of American Red Cross receives 700,000. American Red Cross is 7x as large. This sort of sticks in my craw, and I think I rather donate to ARC.

(I think it is a bad trend in health related non-profits where salaries are sky-rocketing. )

[Peter Polack]

Here in NYC the major blood donor organization is the New York Blood Center.

Thanks for having the same suspicions as I do. The Connecticut Blood Center is a chain of the New York Blood Center.

I know there are also many different uses for blood, not just transfusions. So reading the fine print of any blood bank operation would be advisable.

That's a good point. I'm beginning to suspect the CT Blood Center may enlisted donations so they can control the blood distribution and keep it within a network of hospitals. While they claim to be a non-profit, what's to stop them from signing contracts with certain for-profit hospital chains to supply them with blood?

Blood Centers tend to distribute the blood they collect to the local area, America Red Cross is national.

Both Non-profit distribute about 90% of their funds. However, for the NYBC, the President, CEO of NYBC receives 1.7mm in salary. The Head of American Red Cross receives 700,000. American Red Cross is 7x as large. This sort of sticks in my craw, and I think I rather donate to ARC.

(I think it is a bad trend in health related non-profits where salaries are sky-rocketing. )

True. I've been e-mailed after donating told where, out of state my blood went, and for what specific use. As far as the salary differential, something smells...

What happens if the NYC/RI/CT Blood Center "non-profit" begins to siphon donors away from the Red Cross? I could see this happening because their hours are more convenient than most blood drives.

[peanutgallery]

Nail meet hammer

this is the big beef between your local Red Cross and the local blood "bank". Always a community squabble, do you want the blood that flowed in the veins of a neighbor or a guy who does clowning from Maine....or something like that

As far as $$$ donations...I send those to the Steve Tilford Foundation...though he sort of disliked me....but hey, I'm a contrarian

Blood Centers tend to distribute the blood they collect to the local area, America Red Cross is national.

Both Non-profit distribute about 90% of their funds. However, for the NYBC, the President, CEO of NYBC receives 1.7mm in salary. The Head of American Red Cross receives 700,000. American Red Cross is 7x as large. This sort of sticks in my craw, and I think I rather donate to ARC.

(I think it is a bad trend in health related non-profits where salaries are sky-rocketing. )

[ldamelio]

(I think it is a bad trend in health related non-profits where salaries are sky-rocketing. )

OT but talent costs. While 700k is a healthy income, someone with the skill set to serve as CEO of the ARC likely could make a logarithmic multiple of that working for a for profit health insurance company. Move out of health care and he/she could make an additional logarithmic multiple applying the same talents on Wall Street or in private equity. People subliminally connect the terms 'non-profit' and 'volunteer'. So, a salary of 700k is not unreasonable if the same person could make 7 mil with United Health Care or 70 mil at Morgan Stanley. Attracting top level talent to run complex organizations that benefit society requires these 'semi-competitive' salaries that superficially seem excessive.