Financial

Blood Service does not receive financial support from society for its operational activities. However, Blood Service can apply for and receive support from public funding sources for specifically defined and targeted investment, development, and research projects.

The production of blood products, research, logistics, storage, etc., is a demanding and complex process that requires a lot of resources: equipment, technology, and skilled personnel.

Donated blood is not used as such, but it is processed into red blood cell and platelet products, as well as plasma for medicinal products. Before a blood product can be used for patient treatment, many work phases are required, all of which incur costs. These costs are covered by hospitals paying Blood Service for the products and services they use.

Most of Blood Service’s income, about 2/3, consists of blood products, and the rest from other services provided to hospitals. In addition to blood product supply services, Blood Service also provides other laboratory and tissue services to hospitals. Hospitals acquire the products and services according to patient needs.

The operation of Blood Service is non-profit. However, the operation must be on a financially viable and strong foundation so that Blood Service can fulfill its responsible task: efficient blood product supply every day to all hospitals in Finland. Any possible financial surplus is not distributed but used to secure and develop operations, such as research activities.

Blood donors are committed to helping patients through their voluntary activities without compensation. This is also essential for the safety of blood products. In Finland, no compensation can be paid for blood donation. This is stipulated by law.

The annual budget of Blood Service is nearly 60 million euros. Financial indicators, as well as social responsibility metrics and other information describing the activities, can always be found in the latest annual report of Blood Service.

Frequently Asked Questions About the Finances of the Blood Service

The Blood Service is a non-profit organization, but sometimes its financial result is profitable. Where is the profit used?

The Finnish Red Cross Blood Service operates for hospitals and the patients treated in them. The Blood Service’s operations are non-profit and are practically entirely financed through revenue funding.

Although the operations are non-profit, they must be sustainably profitable and economically positive to ensure the continuity of operations in all situations. The Blood Service is the only player in its field in Finland and an important support organization for Finnish healthcare. It must be able to maintain a stable economy in the long term. The risks of the Blood Service’s operations are covered by strong self-sufficiency and a strong balance sheet.

Any possible financial surplus or profit for the fiscal year is not distributed but used to ensure the continuity and development of the Blood Service’s operations. The Finnish Red Cross has a research fund for the Blood Service, which supports the Blood Service’s research and development activities.

Well-managed finances also help keep the price development of blood products moderate.

Why does the Blood Service operate almost like a company, even though it belongs to the Red Cross?

Although we are part of the Finnish Red Cross, our operations have many features of business activities. One of these features is strong professionalism in everything we do. This is evident not only in the products and expert services delivered to patients but also in all support services, the promotion of good governance, and everything else we do. It is about critical basic services of society, for which maintaining operational reliability is essential. Business-like and professional operations strengthen precisely this.

On the other hand, the nature of our operations also differs from profit-driven companies. For example, we do not aim to create demand for our products and services through marketing means; rather, the goal of the training and customer communication we conduct is quite the opposite. We guide hospitals on the optimal use of blood and strive to ensure that blood is collected only in quantities that correspond to the hospitals’ needs.

Why does the Red Cross manage the blood supply instead of the state or another public entity?

In Finland, the blood supply began on a large scale during World War II. At that time, the operation was managed by the Finnish Defence Forces. The medical services of the Defence Forces and the Red Cross worked in very close cooperation during the wars. Considering this background, it was very natural that the Finnish Red Cross took over the operation in 1948 when the Defence Forces relinquished it, and no other entities had the opportunity to take on this responsibility. This is, therefore, a long history.

The Finnish Red Cross Blood Service has operated for decades in an excellent manner for the benefit of Finnish healthcare, and its operation is highly respected among hospitals. In many other countries, the Red Cross is also involved in blood supply activities, but not nearly everywhere. The operation fits well as a channel for helping and as a non-profit part of the Red Cross.

The past decades have shown that we have succeeded in our task excellently. Finland’s blood supply is one of the best functioning in the world. We have a strong, unique expertise accumulated over decades and a highly motivated staff committed to the significance of their work. Our operation is also cost-effective, and our impact on Finland’s blood transfusion treatment is significant.

What exactly costs in the blood supply? Doesn’t the blood donated for free by the donor go to the hospital for free?

The production of blood products, research, logistics, storage, etc., is a demanding and complex process that requires a lot of resources: equipment, technology, and skilled personnel. We employ nearly 500 high-level professionals: for example, nurses, doctors, chemists, bioanalysts, and other laboratory professionals, technical experts, and many other specialists.

Donated blood is not used as such, but it is processed into red blood cell and platelet products as well as plasma for use as raw material in medicinal products. Before a blood product can be used for patient care, many work phases are required, each incurring costs. These costs are covered by hospitals paying the Blood Service for the products and services they use. 65% of the cost of a bag of blood consists of blood collection (blood donation activities). Laboratory research accounts for 17% of the costs, the blood product production process 11%, storage and transportation 5%, and medical support 2%.

The blood donor gives their gift for the patient. Our task is to prepare it into a safe blood product and deliver it reliably to the patient. We ensure that every hospital in Finland has blood products available every day for patients who need them. We are extremely efficient and reliable in this task, even when assessed internationally. This would not be possible without blood donors.

The purpose of the Blood Service is not to generate profit but to help patients. Finnish blood donors are also committed to helping patients through their voluntary activities without seeking personal gain. This is also essential for the safety of blood products. In Finland, no compensation can be paid for blood donation. This is regulated by law.

The Blood Service has significant investment assets. Why is such a large amount of assets needed?

The Blood Service is a critical operator in the healthcare of society. Therefore, the self-sufficiency of the Blood Service must be on a strong foundation. It helps ensure the continuity of operations even in potential societal crisis situations or if there were significant problems in the production, distribution, or other activities of blood products. The capital income from investments smooths out annual income and provides flexibility for operations, which is important due to the Blood Service’s special societal role and the risks of the sector.

Is blood sold abroad?

Blood products made from donated blood, i.e., red blood cell and platelet products, are used for patient care in Finnish hospitals and are not sold abroad except in certain exceptional cases. Approximately 180,000 red blood cell products and 30,000 platelet products are used annually in Finnish hospitals.

An exception is very rare red blood cells, which we freeze in the “bank” of rare bloods in case there is a patient in Finland or another country who needs these rare cells for their treatment. We in Finland also benefit from international cooperation, as we may have patients for whom a suitable blood product cannot be found in Finland. Several dozen of these rare blood group red blood cell products have been delivered abroad. In fact, we are pioneers in Finland in finding and storing rare bloods.

Another exception is expired or otherwise unused red blood cells that cannot be utilized in patient care in Finland. These red blood cells, which would otherwise be disposed of, can be used as raw material for the manufacture of a medicine for a rare disease, porphyria. This way, donated blood is used as precisely as possible for the benefit of patients. The medicine was originally developed in Finland and is now manufactured abroad.

The Blood Service sells plasma raw material separated from whole blood to its foreign partners, who manufacture plasma medicines from it. Plasma medicines are not made in Finland, so international cooperation in plasma production is essential to be able to utilize separated plasma in the manufacture of plasma medicines. Plasma medicines are needed, for example, in the treatment of bleeding disorders and severe antibody deficiencies. Finnish hospitals order preparations from international plasma medicine manufacturers for patient care according to patient needs.