The Role of Automated Collectionsin a Changing Industry

Panel Discussion2010 ADRP ConferenceMay 20, 2010 ~ Seattle, WA

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Agenda

• Welcome & Introductions

• Data– Historical Review– Changes in Demand

• Strategies for Improvement

• Questions from the Audience

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PanelistsFACILITATORJohn Hagins

ADRP PresidentCEO, Greater Alleghanies Region, American Red Cross

Mitzi RobbinsDirector, Business Design

North American Blood BankHaemonetics Corporation

Jacque Graham, MT (ASCP)Director, NA Sales and Commercialization

Automated CollectionsCaridianBCT

Ron SheehanSenior Business Design Analyst

Haemonetics Corporation

Tom JohnsonSenior National Account Manager

CaridianBCT

Michael RealeDirector of Software Development – Blood

Center Products Haemonetics Corporation

Michael GendreauSenior Manager, Worldwide Geographic

Marketing, Automated CollectionsCaridianBCT

The Data:Historical ReviewChanging Demand

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Statistics Summary – Hemasphere Data

• 42 Blood Centers• 172 Mobile Collection Operations• 621 Total Collection Operations• 276,233 Completed Blood Drives• 6,435,221 Units Collected• Collected Data Since 2006

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Overall Drive Statistics – WB & 2RBCs

Total number of drives by year

Total number of 2RBC drives by year

2006 2007 2008 2009Mobiles 138,721 150,782 162,122 160,999 Fixed 89,335 97,729 109,352 115,234 Totals 228,056 248,511 271,474 276,233

% of Mobile Drives 61% 61% 60% 58%

2006 2007 2008 2009Mob 2RBC 66,992 79,015 92,184 95,122 FS 2RBC 43,340 49,012 56,916 61,356

Totals 110,332 128,027 149,100 156,478

% of Mobiles 61% 62% 62% 61%

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Overall Drive Statistics – Platelets & Plasma

2006 2007 2008 2009Mob Plat/Plas 422 97 270 438 FS Plat/Plas 10,111 10,485 12,387 14,010 Totals 10,533 10,582 12,657 14,448 % of Mobiles 4% 1% 2% 3%

Total number of Plat/Plas drives by year

2006 2007 2008 2009Mob Plasma 2,550 3,407 3,997 4,782 FS Plasma 13,066 14,608 19,409 21,459 Totals 15,616 18,015 23,406 26,241 % of Mobiles 16% 19% 17% 18%

2006 2007 2008 2009Mob Platelets 1,844 1,505 2,902 2,599FS Platelets 45,478 53,429 64,921 71,593Totals 47,322 54,934 67,823 74,192 % of Mobiles 4% 3% 4% 4%

Total number of Platelet drives by year

Total number of Plasma drives by year

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Apheresis Drive Distribution

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Completed Drives with 2RBC Data (Mobiles)

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Completed Drives with Platelet Data

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Completed Drives with Plasma Data

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2RBCs – Projected vs. Performed (Mobiles)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2006 2007 2008 2009

Performed But Not Projected

Projected But Not Performed

Projected AND Performed

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2RBCs – Projected vs. Performed (Fixed Sites)

0

5000

10000

15000

20000

25000

30000

35000

2006 2007 2008 2009

Perfomed But Not Projected

Projected But Not Performed

Projected AND Performed

With regard to your blood center operations, is it your experience/opinion that overall red cell utilization in your service area has declined in 2009?

13 participants out of 24 responded “yes” 11 participants out of 24 responded

“no”

My blood center has major concerns about the growing surplus of red cells.

In this ASC online survey, 87% of participants agreed with this statement. At the GSABC members meeting in March 2009, only 52% had concerns about the growing numbers of red cell surplus.

Has your blood center had to cut back on collections in 2009?

Quarterly RBC Demand Forecast Data courtesy of BCA

Data courtesy of BCARBC Demand Change – Same quarter, prior year

Data courtesy of BCAQuarterly Platelet Equivalent Demand

Data courtesy of BCAQuarterly SDP Platelet Demand

CaridianBCT Approach

Session Objectives

• Summarize “what we’re hearing from you” - Michael

• Automation strategies with changes in the market – Jacque

• CaridianBCT solutions - All

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What we are hearing from you

• Hospitals– Fewer elective surgeries (most profitable

segment)– Large number hospitals losing money

• Budget cuts and capital spending delays• Pressure on blood pricing

– Transfusion thresholds being challenged

What we are hearing from you

• Blood Banks– “Glut” of some blood products aided by:

• Elective surgery deferrals

• Increased split rates for platelets

• Hospital blood utilization programs

– Selling of products outside of traditional territories• Driving prices down

– Historical operating margins of 2 – 4% being threatened• Cost cutting

• Mechanisms for increased efficiency

• Diversification of revenue streams

What we are hearing from you• Blood Market

– Platelets - demand is slightly up– Expected to continue in this direction

– RBCs - demand is down– Slightly up in some regions– Expected to be flat

» Dependent on blood usage trends– Plasma – FFP is flat. Fractioned plasma is currently

flat.– Fractioned plasma expected to increase

– Automation usage is tending to increase - slightly• Flexibility and efficiency

Blood Center Strategy

FROM– Maximize efficiency of less frequent donors– Maximize availability of products– Collect as many type O red cells as possible

TO– Right product, right time, right place, right

donor

Going forward….

• Use automation to:– Maximize efficiency– Getting more from less or the same number

of donors• Focus on specific blood types/components• Eliminate inefficient cost

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And what about recruitment?

• Recruit more automation/not less– Efficiency of automation

• Recruitment will be more complex– Right product – most efficient– Right time - based on fluctuating demand– Right place – mobile vs. fixed– Right donor - type specific

• More education • Pedigree programs

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CaridianBCT Solutions

CaridianBCT Solutions

• Donor Base Analysis• DonorMax• Vista

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Donor Base Analysis Tool (DBA)

• The “Donor Base Analysis Tool” provides donor recruitment/conversion goals based on: – Donor base data – Blood center collection goals– Blood type and gender

• Outputs– Daily automation/conversion goals by:

• Product type

• Blood type

Donor Base Analysis

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  Platelet Donors from WB DRBC Donors from WB cRBC from Plt Donors cPlasma from Plt Donors

Conversion Rate

Default Estimate

Center Estimate

Default Estimate

Center Estimate

Default Estimate Center EstimateDefault

EstimateCenter

Estimate

10% 2.3% 10% 2.5% 30% 12.0% 30% 31.5%

Blood Type Males Females

Estimated Male Platelet Donors

Estimated Female Platelet Donors

Males Females

Estimated Male dRBC

Donors

Estimated Female

dRBC Donors

Males FemalesEstimated

Male cRBC Donors

Estimated Female

cRBC Donors

Males Females

Estimated Male

cPlasma Donors

Estimated Female cPlasma Donors

O Positive     0 0 y y 868 775 y y 366 327     0 0O Negative     0 0 y y 179 173 y y 76 73     0 0A Positive y y 1,104 896     0 0     0 0     0 0A Negative y y 203 182     0 0     0 0     0 0B Positive y y 327 287 y y 207 182     0 0     0 0B Negative y y 57 50 y y 36 32     0 0     0 0AB Positive y y 113 98     0 0     0 0 y y 157 137AB Negative y y 23 20     0 0     0 0 y y 32 27

Total 3,360 2,451 842 353

Donor Base Analysis

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Step 2: Annual Goals/Collections Summary  Platelets RBCs Plasma

Current Year Projected Collections 47,565 33,295 3,567 Next Year Collection Goals 52,269 36,588 3,920 Annual Collection Variance (4,704) (3,293) (353) Weekly Collection Variance (90) (63) (7) Daily Collection Variance (13) (9) (1)

Step 4: Donor Conversions Needed per Day

Work Days per Week 7.0 WB Donor Conversions to SDPs 9.3

Annual Holidays 6 WB Donor Conversions to dRBCs 3.2

Annual Work Days 358 Additional RBCs from Plt Donors 4.6

Default Annual WDs 280 Additional Plasma from Plt Donors 1.0

Step 5: Additional Component Revenue

Platelets $450.00$500.00

$1,680,075

Total Revenue

$2,432,741 dRBCs $200.00

$220.00$357,329

cRBCs $200.00$220.00

$367,114

cPlasma $80.00$80.00

$28,224

DonorMAX

• DonorMAX includes:– Analysis Tools

• Donor base analysis and others– Staff Educational Tools– Marketing Tools– “MAX”

• Educate and motivate donors on automated collections

• Interactive donor kiosk • Tele-recruitment tool

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A blood center program designed to maximize the efficiency of your existing donor base:

Vista Information System

The Vista Information System automates donor eligibility processes and optimizes donations.

The Vista system:• Identifies the optimal collection for each donor• Tracks and manages blood component loss• Automates the creation of procedure records• Facilitates instant procedure priority updates

on multiple Trima Accel devices• Improves and standardizes processes

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Produce an Ample, Safe Blood Supply

Increase Donor

Frequency

Channel Donors to Preferred

Donation Methods

Collect More

Products per

Donation

Summary

Haemonetics Approach & Solutions

Our Blood Management Definition

Preventing a blood transfusion to the patient who doesn’t need oneProviding the right blood product, at the right time, in the right dose, to the right patient who does

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A world-class blood management program is built on three pillars

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Optimal Blood Management

Point of CarePre Intra PostHospital BB

InventoryTransfusionPreparation

Hospital

Recruitment & Interview

BloodCollection

Processing& Testing

Inventory &Distribution

SponsorManagement

Blood Center

Our portfolio creates a total embodiment of blood management solutions for our customers

Dev

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IMPACT TM Online

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Lean Process Improvement & Six Sigma Programs

Collection Program Optimization

Donor Recruitment & Conversion Training

Transfusion Management

Programs PAD Management

Production & Cost Optimization

Mobile Setup Modeling

Hemostasis Management

Anemia Management

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Historical Journey

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Automation From the 50,000’ Level•Differentiation difficult

•Difficult to craft automation strategies

•Difficult to determine application of standardized practices

•Difficult to determine best strategy for decreasing CPUC

•Difficult to develop annual budget

•Difficult to quickly adapt to changing market drivers

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Evolution of AutomationTimely access to information at the granular level is increasingly important due to changing market drivers

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Program provides an analysis of opportunities across departments, areas, regions, & teams

BLOOD CENTERData from all sources

Hemasphere, etc.

EXPANSION SCENARIOS Determine Collection Ramp Goals Set Timeline Determine intervals between sites Apply Constraints Set Run Rate Targets/Machine Choose Options

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Process Improvement Programs

• Consultative support available to implement process improvement solutions

• Experts available in:– Project and Program Management– Lean Manufacturing– Six Sigma– Recruitment– Collections

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Questions?