After a baby is born and the umbilical cord is cut, some blood remains in the blood vessels of the placenta and the portion of the umbilical cord that is still attached to it. After birth, the baby no longer needs this extra blood. The cord blood contains all the normal elements of blood -- red blood cells, white blood cells, platelets and plasma. However, it is also rich in blood-forming stem cells, which are similar to those found in bone marrow. Cord blood has been used on an experimental basis as a source of stem cells.
Most cord blood transplants have been done to treat diseases of the blood and immune system. They have also been performed to restore the functional deficiencies of several genetic diseases. To date, more than 70 different diseases have been treated with cord blood transplants. Studies have shown good cord blood cell recovery after up to 10 years of storage, but more are examining just how long the blood can be stored and used.
Many families will choose to store their baby's cord blood in a private bank. This means they pay a fee -- usually up to $2,000 to begin with, then $100 a year -- to keep their baby's blood in a secure bank. The family has exclusive rights to the blood and can use it for a stem cell transplant if needed. The baby will be a perfect match for the cells, and the mother may also be able to use the cells since she carried the child during pregnancy. The most common use for newborn stem cells is between siblings; however, any family member who is a suitable genetic match may benefit from them.
"With a private bank, [the stem cells] are yours. You own them, so anytime in that child's life or in that family's life you want to use them, they are available and immediately accessible to you ... It's a small price to pay for a lifetime of biological insurance," Dr. Jason James said.
James also said cord blood could be used to treat more diseases in the future as advances in medicine progress.
"There is a lot of research being done out there, and every day we are finding more and more advances," James said.
Typically, parents decide before the child is born whether they want to store the blood in a private bank since the procedure must happen right after birth.
Parents also have the option of storing their baby's cord blood in a public bank. This means they donate the baby's blood, so other families can purchase it for a cord blood transplant. There is no cost for donating the blood. However, cord blood donation is currently not possible in many communities because they do not have the technical and financial resources needed to establish and operate a public cord blood bank.
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Blood debate
 Doctors disagree on where the blood from a baby's umbilical cord should be sent after birth.



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Dr. Gary Kleiner, from the University of Miami, only recommends a private bank if a family has a history of certain genetic diseases or blood disorders. Otherwise, he recommends a public bank.
"If a family does not have a history of those major problems, chances are you're not going to need the cord blood. If a public bank is available, I always recommend patients strongly consider donating to a public bank," Kleiner said.
Families who purchase the blood through a public bank don't receive a perfect match for their child, but most of the time, the blood doesn't have to match perfectly. The American Academy of Pediatrics estimates that the odds a child would need his own blood at this time are as slim as one in 200,000. Some doctors also believe private cord blood banks use "scare tactics" on parents to convince them to store their child's blood.
"Pretty much every pregnant patient is a potential marketable patient to the private cord bank, so it is almost a billion dollar business," Kleiner said..