ORGAN TRANSPLANTATION Ben Durham, Kathryn Goodridge, Pujan Patel, Chelsea Perry, and Sagar Shah

ORGAN TRANSPLANTATIONBen Durham, Kathryn Goodridge, Pujan Patel, Chelsea Perry, and Sagar Shah

Approximately 18 patients die each

day in the U.S. as a direct result of

the shortage of kidneys available for

transplantation.

Overview

➢ Incentives for Producers and Consumers

➢ Characteristics of Consumers

➢ Inputs

➢ The Role of the Government

➢ An Entrepreneurial Solution

Key Terms

➢ Output: Kidney Transplant Surgery

➢ Inputs: “Transplantable Kidney” and Capital/Labor

Inputs

➢ Suppliers: Medical Facilities and the Donor

➢ Producer: Providers and the Donor

➢ Consumer: Patients

Biological Producer

Economic Producer

Supplier

Output

Supplier: Registered donor supplying/ donating the kidney

Output: Kidney Transplant Surgery

Economic Producers: Registered donor with transplantable kidney

Biological Producer: Humans with kidneys

Producers & Consumers

➢ Consumers

-Patients on kidney transplant waiting list

➢ Producers

-Kidney Donors

-Healthcare Providers

Consumer Incentives & Behaviors

➢ Incentives

-Need for survival

-Increase quality of life

➢ Behaviors

-Meet kidney eligibility requirements

-Obtain coverage

Producer 1: Kidney Donor

➢ Incentives

-Goodwill

-Personal Relationships

-Lasting Legacy

➢ Behaviors

-Donate a Kidney

-Organ Donor Registration

Producer 2: Healthcare Provider

➢ Incentives

-Goodwill

-Clinical Interest

-Financial Returns

➢ Behaviors

-Promote and Perform the Kidney

Transplantation

Traditional Market

➢ Producer makes product for generic consumer

➢ For Example:

-A Pen company produces pens for a generic

customer

Market for Kidney Transplants

➢ Much more specific

-Genotypic Matching

-Immune system compatibility

-Genetic factors

-Blood Type

If Kidney and Recipient Mismatch

➢ Acute Organ Rejection

➢ Morbidity

➢ Death

Third Party Influence

➢ UNOS determines kidney allocation by using

metrics such as:

-Life-Years from Transplant

-Dialysis Time

-Donor Profile Index

Substitute

➢ Hemodialysis

Pro- Prolong the need for a Kidney Transplant

Con- Inconvenient, Associated with Morbidity

Two Main Inputs

➢ Transplantable Kidney

➢ Medical Facilities with Capital and Labor Inputs

Characteristics of the Medical Facility

➢ Labor Inputs

-Skilled Staff

-Pre and Post Surgical Care

-Organ Transportation System

➢ Capital Inputs

-Supportive Resources for the completion of transplant

-Specialized Equipment

Effects of Incentives on the Suppliers

➢ Medical Facilities

-Few Financial benefits

-Need to meet their community health assessments

-No Shortages of medical facilities

➢ Donors

-Lack of incentives to become a donor

-Shortages in transplantable kidneys

Gap Between Supply and Demand

The Government’s Role in the Market

➢ Complicated, Controversial, and Highly

Regulated

➢ Excess Demand for Kidney is Critical Policy Issue

➢ Strict Legal Limit on Market for Organs

The Government’s Role in the Market

➢ National Organ Transplantation Act of 1986

(NOTA)

-Prohibits Market for Organs

➢ Legal Procurement a function of United Network

for Organ Sharing (UNOS)

➢ Regional Organ Procurement Organizations

(OPOs)

Government Behavior’s Effect on Market

➢ Implications for Supply

➢ Uniform Anatomical Gift

Act = Consent

➢ Organ donation registration

via “opting-in”

Government Behavior’s Effect on Market

➢ Policies augment organ shortage

➢ Generates Black Market

➢ Time cost

➢ Imperfect information

-Government’s behavior does not necessarily reinforce

imperfect information, but it does not alleviate it

Entrepreneurial Solution

➢ Shortage

➢ 3 Ways to Increase Supply

-Wearable Artificial Kidney

(WAKS)

-Grow in a Lab

-3D Printing

Which One?

➢ WAKS are feasible, but other options preferable

➢ Growing in a lab slow, high labor costs

➢ 3D printing market is huge, and the process is

much faster, might have higher capital costs,

but lower labor costs

What to Produce?

➢ Whole kidney is not necessary, but a “mini-

kidney” will restore function above the level that

requires hemodialysis

➢ Our friend can then expand into other areas of

the 3D organ printing market and help with

shortages there

Summary

➢ Incentives for Producers and Consumers

➢ Characteristics of Consumers

➢ Inputs

➢ The Role of the Government

➢ An Entrepreneurial Solution

Take-Away

➢ Shortage in Organ Markets

➢ Lack of Incentives

-Exacerbated by clinical criteria and

government

regulation

➢ The Future...

Questions & Answers