LAW COULD HALT BLOOD FLOW COLLECTION COMPANY MIGHT LOSE RIGHT TO PAY FOR PLATELETS.

Byline: Evan Pondel Staff Writer

WOODLAND HILLS - Some call it blood money.

For HemaCare, it's the very sustenance that keeps the publicly held company alive. Paying individuals more than $50 for each blood collection, about 25 percent of HemaCare's business stems from selling platelets to hospitals.

But the approaching end of an exemption allowing compensation for blood donations dashes the Woodland Hills-based company's ability to pay its donors after Dec. 31. The result: HemaCare will have to shutter its donation center in Sherman Oaks and rely on other business segments for survival, according to Alan Darlington, the company's chief executive officer and chairman.

``We're entering a very tough period right now,'' he said. ``We can only hope that by Dec. 31, things will improve for us.''

Yet the prospects remain grim.

A bill authored by state Sen. Edward Vincent, D-Inglewood, would extend HemaCare's ability to pay for the collection of platelets indefinitely. However, Vincent has taken ill in recent months, and progress on the bill has slowed. Darlington said without the bill, the demise of HemaCare's platelet donation business is almost inevitable.

``HemaCare alone can't dig its way out of this anymore, we need the support of the state Senate Health Committee, hospitals and doctors in the community,'' Darlington said.

Evidence of HemaCare's anemic outlook is in its stock price. HemaCare shares have lost more than 50 percent since Jan. 1. Shares declined 7 cents, or 9.6 percent, to close at 66 cents Tuesday on the OTC Bulletin Board.

And while the company continued the expansion of its blood products segment in the first quarter of 2002 - pushing revenues to $6.3 million, versus $6.1 million in the same period a year ago - HemaCare posted a net loss of $138,000, compared with $219,000 in the first quarter of 2001.

``I suspect some of the weakness is a result of the waning longevity of our paid donation services,'' Darlington said.

Dealing with opposition to such donation services isn't new for HemaCare. Since its inception in 1978, the practice of compensating volunteer blood donors has drawn criticism from the American Red Cross. Dr. Ross Herron, medical director of the American Red Cross Blood Services Southern California Region, said he opposes paying people to donate platelets for safety reasons.

``The problems arise when dealing with questions about risk behavior,'' Herron said. ``Are you judging someone's desire to get that payment? Or are you counting on someone's ability to tell the truth?''

Most individuals who donate to the Red Cross have to answer several question before the not-for-profit organization even uses a donor's blood. Herron said if money is added to the equation, he's concerned more people will try to appeal to the collection center, instead of revealing the truth about viruses or other conditions.

Even so, HemaCare adheres to stringent guidelines before accepting a donor's platelets. Before the donation process even begins, HemaCare tests for viruses and other potential problems that could taint the purity of the donation.

Barbara Weinstein, 47, has made about 30 platelet donations at HemaCare. But on Tuesday, nurses refused to tap Weinstein's veins because of a supposedly high white blood cell count.

``Who knows, I may have a virus or something,'' she said. ``But you know, this really shows how cautious this company is. I'm comfortable here, and the fact that they pay us doesn't lure me to this center.''

Though Weinstein has amassed more than $2,000 selling her platelets to HemaCare, she said the money is just added incentive. ``I'm here to help people that need the platelets. And I could easily go to a Red Cross center, but they are not nearly as comfortable as the HemaCare facility.''

A white board about 20 paces from Weinstein lists each donor that's visiting the center for the day. Their blood types are neatly penned next to each of the donor's names.

Donating platelets can take more than two hours. A needle is placed in each arm and the donor must lay still until the machine has finished extracting the platelets.

A centrifuge that spins at 2,400 revolutions per minute separates the platelets from the blood plasma. One of the needles sucks the platelet-laden blood into the machine, while the other pumps the remaining blood back into the body.

``It's more uncomfortable than painful,'' said Aurora Rosales, a 33-year- old who's finishing up her doctorate in psychology at Harbor/UCLA Medical Center. ``I'm not here for the money, either. I'm here to help people out who are in need of platelets.''

HemaCare accounts for 30 percent of the platelet supply in Los Angeles. Darlington, 51, said in the 1960s people were worried that paying donors would heighten the probability of receiving sullied donations. But today, ``that's simply not the case,'' he said.

``We have working professionals donating platelets because they want to do good,'' he said.

Bob Achermann, executive director of the California Society of Pathologists, stands behind Darlington's beliefs. Achermann said if people are no longer paid for donating platelets, it's going to squeeze existing supplies.

``Allowing HemaCare to continue its function is critically important to health care providers in Southern California,'' he said. ``And as far as the safety issue, HemaCare relies on donors it's worked with in the past. These are committed people.''

In 2000, HemaCare faced a similar scenario to its present crisis. But the company was able to extend its exemption through an assembly bill that was co-sponsored by Assemblyman Bob Hertzberg, D-Van Nuys.

``Given HemaCare's current situation, I am looking into meeting with various legislators,'' Hertzberg said. ``If there is a platelet crisis in Los Angeles, it's a legitimate issue I'll work on.''

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2 photos

Photo:

(1 -- 2 -- color) Alan Darlington, above, head of the HemaCare blood collection firm, worries his company will be forced to shut down its operations unless legislation is passed allowing HemaCare to pay for platelets. At left, Nurse Fleur Atienza prepares donor Rosales Aurora of Hollywood to a platelet collection machine at HemaCare's Sherman Oaks facility.

Gus Ruelas/Staff Photographer