New Published Study Finds the Cost of Blood Transfusions is Significantly Under-Estimated, Establishes True Cost at $522 to $1,183 Per Unit

IRVINE, Calif., April 5 /PRNewswire-FirstCall/ -- A new blood transfusion cost analysis study published in the April 2010 issue of Transfusion, a peer-reviewed academic journal, shows that when all of the complex cost factors leading up to and after a red blood cell (RBC) transfusion are considered, the actual cost of blood is substantially higher than previously estimated.  With actual blood transfusion costs ranging between $522 and $1,183 per-unit—37% higher than estimated by prior studies, which did not include all associated costs—the new study calculates that the true cost of blood is 3.2 to 4.8-fold higher than reported blood product acquisition costs.(1)  

"Representing the most detailed and rigorous method utilized to date to account for the cost of blood transfusions," study findings confirm that annual expenditures on blood and transfusion-related activities for surgical patients are significant resource drains—costing between $1.6 to $6.0 million per hospital surveyed.  

In the study, researchers from the Society for the Advancement of Blood Management (SABM) and the Medical Society for Blood Management (MSBM) prospectively analyzed 20,104 surgical patients who had their blood typed and screened in preparation for a blood transfusion at two U.S. and two European hospitals.  After precisely mapping all diagnostic, therapeutic, technical, laboratory, logistic, administrative, informational, educational, and quality activities involved in the transfusion of blood in real-world surgical settings, researchers constructed an activity-based cost model capturing all the actual direct and indirect costs of acquiring, delivering, administering, and monitoring RBC transfusions from the hospital perspective—yielding "for the first time a dollar amount for the cost per unit of blood that reflects the complexities of real-world blood utilization."

Study findings also showed that "total annual blood costs are largely driven by transfusion rate," which includes factors such as the proportion of surgical patients transfused and the number of RBC units per patient transfused, and provide a unique understanding of both cost drivers and the opportunities for cost containment.  According to researchers, "reducing either or both factors has the potential to reduce costs dramatically."

Most importantly, the study's activity-based cost model provides a "roadmap for institutional administrators worldwide to evaluate hospital processes and the impetus to initiate programs to reduce and optimize blood usage," says lead researcher and the President-elect of SABM, Aryeh Shander, M.D., who is also the Executive Medical Director for The Institute for Patient Blood Management & Bloodless Medicine and Surgery at Englewood Hospital and Medical Center in Englewood, New Jersey.  Dr. Shander believes that this study spotlights the incredibly complex resource and cost drains associated with real-world blood transfusions, offering hospitals and healthcare providers an important cost saving insight that "improved blood testing techniques and blood conservation strategies provide unique opportunities to significantly reduce the number of unnecessary blood transfusions and the quantity of units administered—delivering better cost containment and patient benefits."

While multiple studies have shown that blood transfusions increase morbidity and mortality, the present study did not attempt to evaluate the morbidity-associated costs of blood transfusions. Thus, the cost estimate presented in this study may still underestimate the cost of giving blood transfusions.  

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(1) Shander, A., Hofmann, A., Ozawa, S., Theusinger, O., Gombotz, H., Spahn, D.  "Activity-based Costs of Blood Transfusions in Surgical Patients at Four Hospitals."  Transfusion. April 2010, Volume 50, Issue 4, Pages 753-765.  Available online here.

About Masimo

Masimo (Nasdaq: MASI) develops innovative monitoring technologies that significantly improve patient care—helping solve "unsolvable" problems.  In 1995, the company debuted Measure-Through Motion and Low Perfusion pulse oximetry, known as Masimo SET®, which virtually eliminated false alarms and increased pulse oximetry's ability to detect life-threatening events.  More than 100 independent and objective studies demonstrate Masimo SET provides the most reliable SpO2 and pulse rate measurements even under the most challenging clinical conditions, including patient motion and low peripheral perfusion.  In 2005, Masimo introduced Masimo Rainbow SET® Pulse CO-Oximetry™, allowing noninvasive and continuous monitoring of blood constituents that previously required invasive procedures, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), and PVI®, in addition to SpO2, pulse rate, and perfusion index (PI).  In 2009, Masimo introduced Masimo Rainbow SET® Acoustic Monitoring™, the first-ever noninvasive and continuous monitoring of acoustic respiration rate (RRa™).  Masimo's Rainbow platform offers a breakthrough in patient safety by helping clinicians detect life-threatening conditions and helping guide treatment options.  Founded in 1989, Masimo has the mission of "Improving Patient Outcomes and Reducing Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications." Additional information about Masimo and its products may be found at www.masimo.com.

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This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, in connection with the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about future events affecting us and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond our control and could cause our actual results to differ materially and adversely from those expressed in our forward-looking statements as a result of various risk factors, including, but not limited to: risks related to our belief that Masimo Rainbow SET Pulse CO-Oximetry noninvasive measurements (specifically SpHb, PVI, and SpO2) will provide sufficient sensitivity and specificity to help clinicians proactively monitor and manage hemoglobin, fluid and oxygen saturation levels more appropriately and conservatively for all patients, as well as other factors discussed in the "Risk Factors" section of our most recent reports  filed with the Securities and Exchange Commission ("SEC"), which may be obtained for free at the SEC's website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. We do not undertake any obligation to update, amend or clarify these forward-looking statements or the "Risk Factors" contained in our most recent reports filed with the SEC, whether as a result of new information, future events or otherwise, except as may be required under the applicable securities laws.

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