Do Hospitals Sell Placentas for Profit?

The placenta is an organ that develops during pregnancy, providing oxygen and nutrients to the developing fetus. Following birth, this organ, often called the afterbirth, is expelled from the mother’s body. Because of the placenta’s complex biological properties and the high value of its components in modern medicine, questions often arise about its fate after delivery and whether hospitals sell this tissue for profit.

The Transactional Status of Placental Tissue

Hospitals do not generally “sell” human tissue, including the placenta, for profit due to strict regulatory and ethical guidelines. Federal laws, such as the National Organ Transplantation Act (NOTA), prohibit the commercial exchange of human organs and tissues in the United States. This prohibition extends to placental components.

In the absence of patient consent, hospitals typically treat the placenta as biohazardous medical waste, disposing of it under Occupational Safety and Health Administration (OSHA) regulations. However, due to the tissue’s value, hospitals often partner with Birth Tissue Procurement Organizations (BTPOs) or research facilities. These third-party entities do not purchase the tissue itself. Instead, they reimburse the hospital for the substantial costs associated with recovery, processing, and handling the tissue according to stringent medical standards.

These procurement companies operate commercially, manufacturing and distributing products derived from the donated tissue. The hospital receives compensation for its services and overhead, while the procurement organization profits from the processed end-products. This system allows for the distribution of valuable tissue for medical applications without violating the non-commercial nature of the donation.

Clinical and Research Applications of the Placenta

The high demand for placental tissue stems from the unique biological components contained within its layers, particularly the amniotic membrane and the umbilical cord. The amniotic membrane is used extensively in clinical settings because of its natural anti-inflammatory, anti-scarring, and pain-reducing properties. It is often processed into grafts for wound healing, serving as a protective biological barrier for severe burns or diabetic foot ulcers.

This specialized tissue is also valued in ophthalmology for treating corneal ulcers and other eye surface injuries. The placenta is also a rich source of various cells, including mesenchymal stem cells (MSCs) found in the umbilical cord and placental tissue. These cells are the focus of intense research in regenerative medicine for their potential to treat conditions like arthritis and spinal injuries.

Placental components are also used in pharmaceutical research and the development of certain cosmetic products. These applications rely on highly processed and purified extracts rather than the raw organ. The organ’s value lies in its unique composition, which promotes tissue regeneration and reduces inflammation, making it a resource for therapeutic product development.

Patient Autonomy and Consent for Tissue Disposition

Expectant parents retain the right to determine the disposition of the placenta after delivery. Any use outside of standard medical waste disposal requires informed consent. If a patient chooses to donate the tissue for medical research or procurement, they must sign a consent form confirming the tissue is a gift and that no financial compensation will be provided.

Parents have three primary options for the placenta: disposal, donation, or retrieval for personal use. If no instruction is given, the hospital will dispose of the placenta as medical waste. If a parent wishes to take the placenta home, such as for burial or encapsulation, they must arrange this in advance with the hospital.

Retrieval for personal use involves completing specific paperwork, as the tissue is still considered biohazardous material outside of the hospital environment. Strict protocols must be followed to ensure safe handling and disposal once the tissue leaves the facility, reflecting the legal and health considerations.