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