Why is cord blood banking so expensive?
Cord blood banking is not a commodity, it is a medical service. Dr. Dennis Todd, head of Community Blood Services, explains all the steps that a cord blood donation must go through before it is safely stored so that it may one day be the match to save a life.
After all is said and done, the cost to collect, test, process and store a donated cord blood collection at a public bank is estimated to be $1,200 to $1,500 dollars for each unit banked. That does not include the expense for the regulatory and quality systems needed to maintain licensure, or the cost of collecting units that are discarded because they don't meet standards.
When you consider that public banks can only expect to ship 1-2% of their inventory for transplant, you can quickly understand why most public banks are struggling to make ends meet. Family banks do not face these struggles because they make a profit margin on each unit banked.