After experiencing statewide blood shortages this spring, Anchorage-based Blood Bank of Alaska experienced a surplus of donations. Now the bank is shipping extra blood to California, according to the Alaska Dispatch News.
Here are five things to know about the situation, according to the report.
1. The bank started asking for more blood donations in April. Blood Bank of Alaska CEO Robert Scanlon said the facility began asking for more donations due to an anticipated greater need because of external factors such as the Zika virus.
2. In May, Blood Bank of Alaska entered into a contract with San Bernardino, Calif.-based LifeStream. Through the agreement, Blood Bank of Alaska sends an average of one sixth of its weekly donations — about 100 units of blood — to LifeStream. The blood has to be at or less than two weeks from its expiration date to be sent to California.
LifeStream pays Blood Bank of Alaska for sending the donations. Though the contract between the two companies was initially set to end in September, it's been extended to December.
3. Neither party would expand on financial details surrounding the contract. Mr. Scalon said the finances were "proprietary," "very sensitive" and "contractually driven," according to the report.
"What the hospitals provide to us is compensation for the processing of the blood, so what that means is the recruitment of donors, the management of donors, the collection or the blood, the testing of the blood, the manufacturing of the blood products and the distribution of the blood," he added. "So that's how the price is determined as far as Blood Bank is concerned."
4. Blood Bank of Alaska moved into a $45 million facility in February and had to partially fund it with a loan. The bank took out an $8.5 million loan from the Alaska Industrial Development and Export Authority to help pay for its new 57,000-square-foot building. Aside from the loan, much of the funding for the new facility — approximately $33 million — was from state grants.
5. The bank insists the money from LifeStream is not being used to pay off the loan. Instead, Ashere Chait, the bank's marketing and communications director, said the bank will pay off the loan with yet-to-be-received pledges. Mr. Scanlon added Blood Bank of Alaska will also use a $300,000 grant from the M.J. Murdock Charitable Trust to fund loan payments.