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American Red Cross Statement
National Testing Laboratory Consolidation
Tuesday, November 02, 2004 — An evaluation of American Red Cross Biomedical Services operations, lines of service, organizational culture and structure indicate that changes are necessary in order to achieve our priorities and maintain the American Red Cross’ fundamental mission. To improve our alignment with the strategic direction of the overall organization, better focus on compliance and cost containment, and to maximize our testing capacity, we have initiated a restructuring of the National Testing & Reference Laboratories. The Red Cross will be closing four National Testing Laboratories (NTLs) in the next several months. We have found that we can provide the vital services our NTLs offer in fewer locations, while optimizing functions within the remaining facilities.
The National Testing Labs in Atlanta, San Diego, St. Paul and Dedham, Massachusetts will be closed on or about March 31, 2005. The remaining five NTLs in Charlotte, Detroit, Philadelphia, Portland and St. Louis are both geographically situated and operationally capable of supporting all of our testing requirements.
The Red Cross system of national testing laboratories includes nine facilities placed across the nation. Each facility screens several hundred thousand blood donations each year for the presence of communicable diseases. In recent years, blood testing has advanced to include nucleic acid testing which achieves higher sensitivities for the detection of certain viruses. The laboratories in four locations perform traditional screening tests but rely upon other full service Red Cross labs to perform nucleic acid testing. The laboratory consolidation announced today will allow the Red Cross to more fully leverage the investment already made in the existing full service testing laboratories.
This action is not a reflection on past or expected future performance of the NTLs or the employees. It is a necessary business decision. We will continue to test our normal volume of donor samples with the same high level of competency, focusing on regulatory compliance, as we have done in the past.
We know that these changes will affect the lives of our employees and their families. We will carry these actions out in a sensitive and dignified manner and in an atmosphere of open communication. Every effort will be made to assist those affected by this transition.
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