BUSINESS JOURNAL EVENT

2008 Health Care Conference: Frontiers of Health Care

Wednesday, November 12, 2008, 8:00 a.m. - 11:30 a.m., Hyatt Vineyard Creek Hotel & Spa, Santa Rosa

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St. Joseph Health System’s decision on blood supplier remains pending

SANTA ROSA, June 16, 2008 – St. Joseph Health System-Sonoma County will not announce its decision on a blood bank provider today, officials said.

Spokeswoman Katy Hillenmeyer said the decision is pending and will be made by the time its current contract expires July 29. Earlier reports said the decision could come today.

In April, the group that operates Petaluma Valley Hospital and Santa Rosa Memorial Hospital notified its longtime blood provider, Blood Bank of the Redwoods, that it would open up bidding to other blood banks. The group said it would prefer to sign a contract with the 60-year-old community blood bank, but continued increases in prices have forced it to consider alternatives as a way to decrease cost of care to patients.

Blood Bank of the Redwoods spokesman Kent Corley said the bank increases prices between 2 percent and 3 percent on average per year. The increases result from rising payroll and testing costs as well as yearly capital investment.

St. Joseph’s Sonoma County hospitals currently have the highest per patient blood prices in their system, including in Napa, Humboldt and Orange counties, Ms. Hillenmeyer said.