New York Blood Center in Manhattan and Community Blood Center of Greater Kansas City (Mo.) have finalized a merger agreement
, creating one of the largest community-based, not-for-profit blood centers in the country.
Financial terms of the deal were not disclosed. NYBC said it plans to expand its services and research to the Kansas City metropolitan area.
“The market for healthcare services—including blood-related services—is changing rapidly,” NYBC spokesman James Haggerty said in an e-mail. “Moreover, blood centers have not been exempt from the general trend toward integration/mergers in the healthcare industry. The combination of CBC and NYBC provides the opportunity for greater breadth of services, efficiency and financial stability.”
NYBC provides transfusions and other blood-related services to 200 hospitals throughout Connecticut, New Jersey, New York and Pennsylvania. CBC, which will retain its name, works with about 70 hospitals throughout Missouri and Kansas. In addition to blood donations, NYBC is the site of the National Cord Blood Program, which uses donated umbilical cord blood for advanced transplants and stem cell research.
In fiscal 2013, NYBC tallied a $1.6 million surplus and more than $329 million in revenue, according to the group's most recent IRS Form 990. Dr. Christopher Hillyer, CEO of NYBC, earned $1.26 million that year. Eight other NYBC executives made more than $350,000.
Comparatively, CBC lost $3.1 million in its fiscal 2012 and recorded $42.9 million in revenue. Dr. Jay Menitove, CBC's now-retired CEO, made more than $458,000.
Blood centers like NYBC and CBC provide more than 90% of the nation's blood supply, according to a 2011 HHS report (PDF)
. Follow Bob Herman on Twitter: @MHbherman