The Cost of Waiting: The Economics of Dialysis and Transplantation

Why the transplant system spends more and delivers less than it should

The United States spends tens of billions of dollars each year managing kidney failure, largely through ongoing dialysis care. Yet, kidney transplantation, which improves survival and lowers long-term costs, reaches only a fraction of those who could benefit.  Despite decades of data supporting its economic and clinical value, tens of thousands of patients remain on dialysis year after year, at extraordinary cost to patients, hospitals, and the healthcare system as a whole. This is not because transplantation lacks clinical or economic value. It is because the system that supports transplantation remains constrained by limited preservation time, operational complexity, and incomplete visibility during decision-making, creating conditions that quietly steer care toward the most expensive path. These constraints are structural, not inevitable.

Dr. David Axelrod, System Medical Director for Value and Informatics and Vice Chairman of the Department of Surgery, has long argued that kidney transplantation is one of the rare areas in medicine that both improves outcomes and reduces long-term costs, yet the system has struggled to realize that value at scale.

“The more people that we can get transplanted, the more money we can overall save for our economy. But we need a technology that allows us to do that safely and consistently,” notes Dr. Axelrod.

Dialysis as “a bridge”

For patients with kidney failure, dialysis is often framed as a necessary interim therapy while awaiting a transplant. For many, however, that interim period extends for years and becomes a prolonged, compounding burden. Transplant recipient Ursula Baker shared her experience with us:

 “I was actually on dialysis for two and a half years. The dialysis was working great, but I would have dialysis one day, and then that day was shot for me because I was so tired. The biggest challenge mentally was how much longer… am I ever, is it ever going to be my turn?”

Dialysis requires patients to remain tethered to a machine multiple times per week, often for years. It limits the ability to work, travel, and live independently, and its costs accumulate relentlessly.

“The cost of dialysis is somewhere on the order of $88,000 to $120,000 per year per person,” says George Barr, Chair of the Board at BMI OrganBank. “The system can’t reduce the cost quickly enough to match the number of people entering dialysis every year.”

The economics are clear. Dialysis represents an ongoing, recurring expense. A successful kidney transplant, by comparison, is associated with significantly lower annual expenses and a markedly better quality of life. Over time, transplantation can generate net savings of hundreds of thousands of dollars per patient by eliminating the need for ongoing dialysis and reducing hospital utilization, while returning individuals to productive, independent lives.

“Once someone receives a transplant, they’re able to contribute to the economy instead of drawing from it,” Barr notes. “That’s a transformation not just for the patient, but for families and for the healthcare system as a whole.”

The economic paradox at the heart of transplantation

The current transplant infrastructure was designed around cold storage and limited preservation windows, technologies that inherently constrain time, insight, and flexibility. As a result, hospitals, surgeons, and payers remain locked in a cycle where waiting is expensive, yet acting with confidence is often not possible.

At a system level, the contradiction is simple: dialysis costs more, transplantation delivers better outcomes, and yet transplantable organs remain underutilized.

Operational Strain Drives Economic Cost

When a donor kidney becomes available, hospitals must mobilize quickly under significant uncertainty. Organs arrive unpredictably, often overnight or on weekends, requiring teams to secure operating rooms, surgical staff, ICU beds, and confirm recipient readiness, often within hours and with limited flexibility. Resources are committed before it is known whether the transplant will ultimately proceed. Under these conditions, even routine variability can strain the system.

Clinicians who manage these scenarios firsthand understand how narrow preservation windows shape hospital decision-making.

“It takes a lot of coordination. A lot of different teams are involved. It’s like juggling 10, 15 balls in the air,” says Dr. Alan Farney, abdominal transplant surgeon at Atrium Wake Forest Baptist Health.

That coordination unfolds across procurement organizations, transplant centers, transportation teams, surgical staff, and hospital systems that must synchronize activity within compressed timelines. The narrower the preservation window, the less capacity the system has to absorb disruption.

“There’s data that shows that if you need an operation, you actually want to have your operation first in the morning because you actually get better results,” continues Dr. Farney.

Operational strain directly affects both outcomes and cost. Nighttime surgeries, fatigued teams, and rushed decisions increase the likelihood of complications, driving downstream cost and affecting outcomes.

Short-term decisions create long-term financial drag

When time is limited and insight is incomplete, transplant teams may face difficult decisions about whether to accept or decline a kidney. Some organs are declined because clinicians cannot confidently assess their condition, while others may be transplanted despite uncertainty about how they will perform after transplantation.

When a transplanted kidney fails prematurely, the consequences extend beyond the loss of the graft. Patients may return to dialysis and the transplant waiting list, potentially with increased sensitization that can make finding a subsequent compatible organ more difficult. The resulting cycle can add dialysis, hospitalization, and future transplant costs to an already expensive course of care.

Reducing delayed graft function and early organ failure is not only a clinical priority.

It is a financial imperative.

How System Constraints Drive Inefficiency

When time is scarce and physiologic insight is limited, hospitals reserve excess resources, surgeons operate under fatigue, organs are underutilized or discarded, and patients remain on dialysis longer than necessary.

The result is a system that spends more to achieve less.

These economic dynamics make clear why incremental improvements to the status quo are insufficient. Solving the transplant crisis requires redesigning the system to expand compressed time windows, enable more confident clinical decision-making, and relieve logistical bottlenecks across the transplant ecosystem.

In the next phase of this discussion, we move from diagnosing system constraints to exploring solutions. We will examine what becomes possible when organ preservation is reimagined not as passive storage, but as an active, informative phase of care that strengthens clinical confidence, aligns economic value, and enables a more resilient transplant system at scale.

What changes when organ preservation shifts from passive storage to active, physiologically informative care?

Watch the System Constraints Video

Watch leading transplant experts explain the constraints shaping today’s transplant system.

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Blood-free perfusate

Proprietary acellular perfusate designed to support metabolically active preservation—enabling oxygen delivery, nutrient support, and management of oxidative stress without the need for donor-matched blood.

Real-time visibility across the journey

Tracks organ status and location during preservation and transport, supporting coordination and assessment across teams.

Portable perfusion. Continuous preservation.

Automated, portable device designed to maintain kidneys in a metabolically active state during preservation and transport.
Operates at room temperature without donor-matched blood.