A blood donor works with the Red Cross at a blood drive in Texas. Photo courtesy of the Red Cross.
For at least the third time in four years, a local nonprofit has been outdueled in Richmond by the American Red Cross, allowing the national organization to grab further control over the blood supply to area hospitals.
The Red Cross won the contract to be the primary blood supplier to VCU Medical Center as of May 1, beating out locally based Virginia Blood Services, which had held the contract with VCU for 20 years.
The change means the American Red Cross, which already provides about 40 percent of the entire country’s blood supply, has won the business of Richmond’s three largest health systems away from VBS: HCA switched over in 2012, followed by Bon Secours in 2013.
In a prepared statement, a Virginia Blood Services representative said: “We are disappointed in (VCU Medical Center’s) decision not to renew the contract with VBS as the primary provider of blood products and services.”
“Regardless of this decision, VBS will maintain its commitment to be a community supplier of blood products to hospitals and patients throughout Virginia and our extended markets,” the statement continued.
The nonprofit, headquartered at 2825 Emerywood Parkway, still supplies major health systems in the state, including Valley Health in the Shenandoah Valley; the Carilion Clinic, a nonprofit based out of Roanoke; and the UVA Health System in Charlottesville.
“We are responsible for maintaining inventories for over 125,000 blood products throughout Virginia, West Virginia and Washington, D.C.,” the VBS statement reads. “We have been here in the (Richmond) community in the past and we intend to remain here.”
The representative did not state how the loss of these major contracts may impact VBS and did not return further requests for comment.
According to its most recent tax filings available through Guidestar.com, VBS brought in $24.8 million in revenue during 2012, the year it lost HCA’s business. That marked an $11.4 million decrease from 2011.
The Red Cross now services 15 hospitals in the Richmond area, spokeswoman Kristen Hatfield said.
“We are the primary supplier in the Richmond area, and you’re going to find us everywhere throughout the state,” Hatfield said. “Local needs are met first, but we have that unique ability to move blood wherever and whenever it’s needed.”
The Red Cross supplies 60,000 blood products each year to the three major local health systems, along with Community Health Systems’ Southside Regional Medical Center in Petersburg. Blood products refers to the separated portions of donated blood, including red blood cells, plasma and platelets.
In the Red Cross’ mid-Atlantic region, which includes Richmond, the organization collects 500 to 600 pints every day through local blood drives. On average, a donor will give about 3 pints of blood per draw, it said.
Hatfield declined to share financial details of the contracts between the Red Cross and the Richmond health systems. She said the organization operates on a cost-recovery basis, meaning it charges hospitals to help cover the costs of collecting, testing, storing and supplying the blood.
VCU would not comment on the matter by press time.
The Red Cross has been in the blood banking industry since 1941 but has served Richmond since 1917 through its other services, including disaster relief. The national organization brought in almost $3 billion in revenue in 2013.
VBS was created in 1974, and at the time was called the Richmond Metropolitan Blood Service. The organization operates nine donor centers throughout the state, including one at its facility on Emerywood Parkway and another in Innsbrook at 4040 Cox Road. VBS became part of Pittsburgh-based Institute for Transfusion Medicine in late 2012.
A blood donor works with the Red Cross at a blood drive in Texas. Photo courtesy of the Red Cross.
For at least the third time in four years, a local nonprofit has been outdueled in Richmond by the American Red Cross, allowing the national organization to grab further control over the blood supply to area hospitals.
The Red Cross won the contract to be the primary blood supplier to VCU Medical Center as of May 1, beating out locally based Virginia Blood Services, which had held the contract with VCU for 20 years.
The change means the American Red Cross, which already provides about 40 percent of the entire country’s blood supply, has won the business of Richmond’s three largest health systems away from VBS: HCA switched over in 2012, followed by Bon Secours in 2013.
In a prepared statement, a Virginia Blood Services representative said: “We are disappointed in (VCU Medical Center’s) decision not to renew the contract with VBS as the primary provider of blood products and services.”
“Regardless of this decision, VBS will maintain its commitment to be a community supplier of blood products to hospitals and patients throughout Virginia and our extended markets,” the statement continued.
The nonprofit, headquartered at 2825 Emerywood Parkway, still supplies major health systems in the state, including Valley Health in the Shenandoah Valley; the Carilion Clinic, a nonprofit based out of Roanoke; and the UVA Health System in Charlottesville.
“We are responsible for maintaining inventories for over 125,000 blood products throughout Virginia, West Virginia and Washington, D.C.,” the VBS statement reads. “We have been here in the (Richmond) community in the past and we intend to remain here.”
The representative did not state how the loss of these major contracts may impact VBS and did not return further requests for comment.
According to its most recent tax filings available through Guidestar.com, VBS brought in $24.8 million in revenue during 2012, the year it lost HCA’s business. That marked an $11.4 million decrease from 2011.
The Red Cross now services 15 hospitals in the Richmond area, spokeswoman Kristen Hatfield said.
“We are the primary supplier in the Richmond area, and you’re going to find us everywhere throughout the state,” Hatfield said. “Local needs are met first, but we have that unique ability to move blood wherever and whenever it’s needed.”
The Red Cross supplies 60,000 blood products each year to the three major local health systems, along with Community Health Systems’ Southside Regional Medical Center in Petersburg. Blood products refers to the separated portions of donated blood, including red blood cells, plasma and platelets.
In the Red Cross’ mid-Atlantic region, which includes Richmond, the organization collects 500 to 600 pints every day through local blood drives. On average, a donor will give about 3 pints of blood per draw, it said.
Hatfield declined to share financial details of the contracts between the Red Cross and the Richmond health systems. She said the organization operates on a cost-recovery basis, meaning it charges hospitals to help cover the costs of collecting, testing, storing and supplying the blood.
VCU would not comment on the matter by press time.
The Red Cross has been in the blood banking industry since 1941 but has served Richmond since 1917 through its other services, including disaster relief. The national organization brought in almost $3 billion in revenue in 2013.
VBS was created in 1974, and at the time was called the Richmond Metropolitan Blood Service. The organization operates nine donor centers throughout the state, including one at its facility on Emerywood Parkway and another in Innsbrook at 4040 Cox Road. VBS became part of Pittsburgh-based Institute for Transfusion Medicine in late 2012.