The Blood Center of Iowa » News

Bookmark and Share

Posted Wed, 27 Jan 2010

Blood Centers Explore Combining Operations to Contain Healthcare Costs

 The Blood Center of Iowa and Siouxland Community Blood Bank, two strong Iowa-based blood centers, are considering combining operations to better serve hospital customers by providing them with lower blood costs and additional value-added benefits. 

The leadership and volunteer board of directors for the organizations began discussions earlier this year to explore areas where combining services may help counteract the rising costs of health care. Together, the two centers collect roughly 156,000 units of blood from volunteer blood donors annually. The Blood Center of Iowa, headquartered in Des Moines, is the largest community-based blood center in Iowa, providing blood and blood products to 50 Iowa and Nebraska hospitals. Siouxland Community Blood Bank, headquartered in Sioux City, serves 37 Iowa, Nebraska and South Dakota hospitals with blood and blood products.

By joining operations, representatives from both organizations believe the blood centers could help contain healthcare costs by reducing the cost of a unit of blood for hospital customers by consolidating similar functions such as technical and medical expertise, information technology and human resource practices.  Uniting operations also would provide the organizations enhanced market competitiveness for the acquisition of blood banking equipment, supplies, and blood testing protocols.

A combination of services between the two blood centers would be invisible to blood donors as each organization would retain its local presence in the community. The final decision to combine organizations will be based on the results of a benefits analysis that is being completed by each blood center. 

“As healthcare costs continue to rise, it is important for us preserve our community assets by being stewards of our resources.  One way to do this is to explore options on how we can provide hospitals with quality blood and blood products in the most cost effective way,” said Stacy Sime, CEO for The Blood Center of Iowa. “It makes sense to discuss avenues to join efforts in areas where we both offer similar services.  Over the years, each organization has developed a presence within the community that garners the support we rely upon from blood donors and blood drive sponsor groups so as we move ahead with discussions, it is crucial for us both to ensure we can independently maintain that same level of support,” Sime added.

“Together, our two organizations employ 385 staff so moving ahead thoughtfully and carefully with respect to our staff’s needs and concerns is an absolute must for both of us,” said Jan Twait, CEO for Siouxland Community Blood Bank. “Each of our organizations is working closely with our board of directors to ensure our community interests are preserved and the proposed structure benefits both organizations.  We have not yet identified a specific timeline for a final decision,” Twait added.