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May 9, 2021

Executive Compensation at OneBlood

by Anne Paddock

The blood banking industry is truly one of the most unusual businesses in this country:  the participants rely on a donated product which they collect, test, process, and then distribute.  But, the paradox is they get the product for free and sell it for a profit (their cost is in collecting, testing, processing and distributing).

Most people are aware of the American Red Cross but there are lots of other players including an organization called OneBlood. Based out of Orlando, Florida, this tax-exempt, non-profit 501 (c) (3) organization collects donated blood, tests it, processes it by breaking it up into salable components (i.e platelets, plasma, etc), and the sells it to about 270 hospitals in Florida, Alabama, Georgia, South Carolina, and North Carolina.

OneBlood is governed by 9 independent voting members, 8 of whom are male while 1 is a female.

In 2019, OneBlood reported total revenue of $357 million, most of which came from the sale of red blood cells, platelets, and plasma.  Expenses totaled $337 million (including $13 million in depreciation) with the three largest expenses being compensation ($164 million), medical supplies and outside testing ($77 million), and office-related expenses ($41 million).  At year-end, OneBlood had $301 million in net assets – an increase of $41 million from the beginning of the year (due to unrealized gains on investments and excess revenue over expenses).

3,129 employees received $164 million in compensation which equates to an average compensation of about $53,000. 101 employees received more than $100,000 in compensation with the 12 most highly compensated reported to be:

  • $765,483:  George Scholl, CEO
  • $506,335:  Rita Reik, Chief Medical Officer
  • $468,968:  John Murphy, CFO
  • $452,517:  Lance E Reed, COO and CIO
  • $448,846:  Martin A Grable, EVP, Corporate Development
  • $354,617:  Merri Buff Mair, Medical Director
  • $340,284:  Richard Gammon, Medical Director
  • $339,330:  Tisha Foster, Medical Director
  • $321,960:  Alicia Pritchard, SVP, Biologics Oprations
  • $320,193:  Jeanne A Dariotis, SVP, Laboratory Management
  • $301,222:  Richard M Rogers, SVP, Donor Operations
  • $291,966:  Judith Smith, SVP, Quality and Regulatory

The 12 most highly compensated employees received nearly $5 million.  6 of the most highly compensated employees are male while 6 are female.

50 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

  • $36,154,372:  Creative Testing Solutions, of Temple, AZ, for blood testing (note Creative Testing Solutions is an affiliated/related non-profit whose President, Sally Cagliotti received nearly $700,000 in compensation in 2018).
  • $ 2,546,829:  Marsden South LLC, of Minneapolis, MN, for cleaning services
  • $ 1,665,218:  Fenwal, of Chicago, IL, for equipment maintenance
  • $ 1,094,131:  Meridian Partners, of Miami Beach, FL for IT development implementation
  • $ 1,056,983:  Haemonetics Corporation, of Chicago, IL for software maintenance

To read the IRS Form 990 (2019), click here.

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