Fresh Blood Product Procurement

The NBA manages the relationship with the Australian Red Cross Blood Service (Blood Service) the sole supplier of fresh blood products in Australia and is responsible for negotiating and managing the Deed of Agreement with the Australian Red Cross Society (Red Cross).

In August 2006, the NBA executed a Deed of Agreement with the Red Cross (as represented by the Blood Service). The Deed outlines the activities and functions the Blood Service must undertake to provide blood and blood products and related services. It also describes the funding arrangements. The 2006-09 Deed has been extended by mutual agreement of the parties.  The variations to the Principal Deed are set out below. The most recent variation will continue to apply to the Principal Deed until 30 June 2016.

Blood Service: Expenditure and Product Mix

Actual expenditure to the Blood Service decreased from $583.13 million in 2013-14 to $547.10 million in 2014-15 (see table below).

TABLE: Annual Expenditure - Blood Service, 2003-04 to 2014-15

Year Amount ($M) % Growth
2003-04 247.8 -
2004-05 277.0 11.8
2005-06 297.7 7.5
2006-07 327.1 9.9
2007-08 369.1 12.8
2008-09 417.2 13
2009-10 456.1 9.3
2010-11 496.6 8.9
2011-12 526.3 6
2012-13 549.3 4.4
2013-14 583.13 6.2
2014-15 547.10 -6.2
TOTAL 4569.6 7.2 (average)

In 2014-15 the Blood Service achieved an operating surplus of $28.5.million through continued implementation of efficiency measures.

Blood Service Performance - Statement of Expectations

The Statement of Expectations (SoE) for the Australian Red Cross Blood Service was approved by all Health Ministers. The SoE commenced in July 2013, and extends until 30 June 2016.

The Blood Service is required to report to Ministers on their performance against the SoE. The 2013-14 report has been provided to Ministers.

Statement of Expectations and Performance Reporting

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