1. Cost Structures of US Organ Procurement Organizations
- Author
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William P. Vaughan, Jennifer L. Bragg-Gresham, John P. Roberts, Frank McCormick, Thomas Peters, Glenn M. Chertow, and Philip J. Held
- Subjects
OPOS ,Organ procurement organization ,Finance ,Transplantation ,Tissue and Organ Procurement ,business.industry ,Data Collection ,Transplants ,Kidney ,Tissue Donors ,Profit (economics) ,Procurement ,Overhead (business) ,Humans ,Perfect competition ,Business ,Activity-based costing ,Monopoly - Abstract
BACKGROUND The goal is to provide a national analysis of organ procurement organization (OPO) costs. METHODS Five years of data, for 51 of the 58 OPOs (2013-2017, a near census) were obtained under a FOIA. OPOs are not-for-profit federal contractors with a geographic monopoly. A generalized 15-factor cost regression model was estimated with adjustments to precision of estimates (P) for repeated observations. Selected measures were validated by comparison to IRS forms. RESULTS Decease donor organ procurement is a $1B/y operation with over 26 000 transplants/y. Over 60% of the cost of an organ is overhead. Profits are $2.3M/OPO/y. Total assets are $45M/OPO and growing at 9%/y. "Tissue" (skin, bones) generates $2-3M profit/OPO/y. A comparison of the highest with the lower costing OPOs showed our model explained 75% of the cost difference. Comparing costs across OPOs showed that highest-cost OPOs are smaller, import 44% more kidneys, face 6% higher labor costs, report 98% higher compensation for support personnel, spend 46% more on professional education, have 44% fewer assets, compensate their Executive Director 36% less, and have a lower procurement performance (SDRR) score. CONCLUSIONS Profits and assets suggest that OPOs are fiscally secure and OPO finances are not a source of the organ shortage. Asset accumulation ($45M/OPO) of incumbents suggests establishing a competitive market with new entrants is unlikely. Kidney-cost allocations support tissue procurements. Professional education spending does not reduce procurement costs. OPO importing of organs from other OPOs is a complex issue possibly increasing cost ($6K/kidney).
- Published
- 2021
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