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Do Hospitals Sell Placentas and Can You Take Yours Home

Hospitals don't sell placentas, but a murky legal gray zone profits billions from them.

Senior Writer · · 10 min read
Cover illustration for “Do Hospitals Sell Placentas and Can You Take Yours Home”
Features · September 8, 2026 · 10 min read · 2,191 words

A wave of social media posts in early 2026 claimed hospitals run a hidden "placenta empire," quietly selling afterbirth to cosmetic companies and research labs for thousands of dollars while new mothers are still recovering down the hall. That claim is false. What's true, and far more interesting, is that a genuine commercial ecosystem exists around placental tissue, built on donation, processing fees, and a legal framework that hasn't fully caught up with the science.

Dr. Jennifer Lincoln, an OB-GYN who writes and posts under her own name, pushed back on the viral claim directly, and her correction is worth taking seriously precisely because it doesn't dismiss the underlying suspicion. The suspicion has roots. Medical institutions in the United States have a documented history of using human tissue and human bodies without consent: Henrietta Lacks' cells were harvested and commercialized without her knowledge, the Tuskegee study subjected Black men to decades of abuse under the guise of care, and forced sterilizations of women continued in some states into the 1970s. For communities carrying that history, distrust of what happens to a body part inside a hospital isn't paranoia. It's pattern recognition, earned the hard way.

Still, pattern recognition and an accurate diagnosis aren't the same thing, and the specific claim now circulating (that hospitals are secretly profiting off individual placentas today) doesn't hold up against the law or the mechanics of how this tissue actually moves. Three separate questions get flattened into one another in most of these posts: what hospitals do by default, what federal law permits, and what a parent can actually choose to do. Each deserves a straight answer, not a viral aggregate of all three.

What hospitals do with the placenta by default

The default path is unglamorous and almost entirely procedural. After delivery, a provider examines the placenta to confirm it came out whole, because retained fragments left inside the uterus cause serious postpartum bleeding. The provider notes its appearance and flags anything unusual. Then, absent other instructions, it goes into a biohazard bag and gets incinerated, the same way tissue from a breast reduction or an amputation would.

OSHA classifies bodily parts and fluids collected in a healthcare setting as human pathological waste, which requires biohazard containment and disposal. Hospitals have followed this same protocol with placental tissue for decades as a matter of common practice, treating it like any other surgical byproduct. Nobody is sneaking placentas out of the delivery room into a freezer truck. If a placenta ends up anywhere besides the incinerator, a parent signed a form authorizing that outcome.

There's one exception worth separating out, because it looks suspicious if you don't know the reason behind it: Some placentas get sent to pathology instead of straight to incineration. That happens when delivery was traumatic or the placenta shows abnormalities. It's diagnostic, aimed at figuring out what happened during labor or whether something needs follow-up, not the first step toward a lab sale. As Lincoln put it, the placenta is probably headed for the incinerator as medical waste, and nobody's making money off it.

What federal law actually says about selling placental tissue

The National Organ Transplantation Act, passed in 1984, bans commercial exchange of human organs and tissue in the United States. Its language defines a "human organ" to include "any other human organ (or any subpart thereof, including that derived from a fetus)," wording broad enough to plausibly sweep in the placenta. Plausibly is doing real work in that sentence, though: whether the placenta actually qualifies as an organ under NOTA has never been tested in court. The statute has simply never been forced to answer the question directly.

The Uniform Anatomical Gift Act closes the gap that ambiguity leaves open. It explicitly prohibits buying or selling body parts, full stop, with felony penalties running up to $50,000 in fines and five years in prison. UAGA does carve out exceptions for materials the body replaces on its own, hair and blood plasma being the clearest examples, and that carve-out matters later when placental tissue gets compared to plasma markets. But the placenta doesn't currently sit inside that exception.

So the bottom line a parent actually needs is simple, even if the underlying statute is messier than it looks: selling a placenta in the United States is illegal. The organ's precise legal classification under NOTA remains an open question. Its status as something you can't sell isn't.

The "service fee" gray zone that makes a commercial ecosystem possible

Hospitals don't sell placentas, but they do work with Birth Tissue Procurement Organizations, and this is where the actual money moves. BTPOs don't purchase tissue outright, since that would run afoul of federal law prohibiting the sale of human tissue. Instead they reimburse hospitals for the cost of recovering, processing, and handling the tissue, framed carefully as a service fee rather than a purchase price.

Most BTPOs don't operate laboratories themselves. Their business is procurement: they approach mothers for consent, collect the tissue, and hand it off to labs that manufacture cell and tissue products from it. Those labs then sell finished products, grafts, membranes, extracts, to hospitals and medical practices. Money flows to the procurement organization and the lab. The hospital gets its overhead covered. The donor, the person whose body produced the tissue, gets nothing.

The consent process is where this gets formalized. Any use beyond standard disposal requires the mother to sign paperwork stating the tissue is a gift and that no compensation will change hands. That's legally accurate. A 2026 article in the Duke Law Journal argued it's also economically incomplete: for-profit companies routinely describe procurement as altruistic donation, lean on federal law to justify paying donors nothing, and then profit from the processed end-products anyway. The women whose bodies generated the tissue receive neither payment nor, often, full information about what happens to it downstream. Federal law offers little clarity, and most states have no explicit regulation covering any of it, which leaves something close to a legal vacuum where a multi-hundred-million-dollar industry currently operates.

The Duke Law Journal piece pushes further, arguing that placentas resemble plasma and gametes, tissues the law already allows to be compensated, far more than they resemble the organs NOTA was written to protect from being bought and sold. Its proposed fix is to amend NOTA to expressly exclude placentas from the organ definition, which would open the door to compensating the women whose bodies produce the raw material this whole industry depends on. For a parent staring at a donation consent form, the honest read is this: "donation" is the correct legal word and an incomplete economic one. The tissue carries real downstream value. The person handing it over usually doesn't see any of it.

How large the placenta bioeconomy actually is and what the tissue is used for

The placenta market was valued at $652.21 million in 2025 and is projected to reach $1,404.87 million by 2034, growing at a compound annual rate of 8.9%, according to Polaris Market Research. Pharmaceuticals make up the largest segment and are expected to keep pace with that overall growth rate. The amniotic membrane alone, a sub-market within this, is even bigger: valued at $2.43 billion in 2023 and projected to hit $6.58 billion by 2032, per GlobeNewswire, driven by the membrane's anti-inflammatory and anti-scarring properties and its usefulness in pain reduction.

What does all that money actually buy? Wound care is one major application: dehydrated amnion and chorion membrane grafts treat severe burns and diabetic foot ulcers, and MiMedx Group is a commercially established player in this space, processing products from consented donations under FDA oversight. Ophthalmology uses placental tissue for corneal ulcers and eye surface injuries. Pharmaceutical applications extend into a range of therapeutic areas under active research and development. Cosmetics companies use highly processed placental extracts, not raw tissue, for skin texture and anti-aging products. Regenerative medicine research draws on mesenchymal stem cells from the umbilical cord and placenta, with early-stage interest in arthritis and spinal injury treatment.

MiMedx alone has distributed more than one million medicinal products derived from placental tissue, a number that gives some sense of the scale this processing operates at. Other confirmed players in the space include Amnio Technology, Celularity, Human Regenerative Technologies, Katena Products, Integra LifeSciences, Skye Biologics, and Amniox Medical. ConnectLife, a tissue donation organization, notes that a single birth tissue donor can help as many as 100 people, and that figure is one procurement organizations frequently cite in public-facing materials about birth tissue donation.

None of this makes the tissue's use illegitimate. Wound grafts heal real wounds. Corneal treatments save real vision. The actual problem isn't that placental tissue gets used commercially. It's that the person who produced it is the only party in the entire chain who walks away with nothing, and frequently without a full picture of where her tissue is headed.

Whether you can take your placenta home and what actually governs that decision

In most places, yes, you can take your placenta home. It's your organ, and the law generally treats it that way. What's genuinely uneven is the path to getting it out the hospital door, because this operates less like a settled state-law question and more like a hospital-by-hospital policy call. Texas is the only state with a standardized statewide release form; everywhere else, the rulebook is whatever the individual hospital decides to write.

As of December 2024, nine states have explicit laws exempting the placenta from medical waste regulations: Arkansas, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, Oregon, and Texas. Six more states have no such explicit exemption on the books but tend, in practice, to interpret existing rules loosely enough to allow release anyway: California, Colorado, Delaware, Illinois, Minnesota, and New York. Outside those fifteen, the answer depends heavily on which hospital and which charge nurse you happen to get.

Texas offers the clearest template for what a formalized process looks like. The state requires a negative test for specified infectious diseases before release, and whoever takes possession has to sign a form acknowledging blood-borne disease risk. Texas law also draws a hard line after the handoff: taking the placenta home is permitted, selling it afterward is not.

Timing matters more than most parents expect. Hospitals typically expect the placenta to be claimed promptly, and infectious disease testing has to clear before anyone releases it. If delivery turns traumatic or the placenta shows abnormalities, it likely goes to pathology instead, and once that happens, getting it back for personal use is usually off the table. A commonly shared piece of advice is to mention the intent to take the placenta home at multiple points — during a prenatal visit, at hospital admission, and again at delivery — so the request is on record with multiple people before anyone's too exhausted to advocate for it. If a hospital pushes back anyway, knowing your state's status, putting the request in writing inside a birth plan, and having a support person ready to speak up on your behalf covers most of the friction points that come up in the moment.

What parents can do with a placenta once they have it, and what the evidence says about each option

Donation is the option with the clearest documented benefit. Organizations such as Gift of Life Michigan coordinate consented placenta donation at no cost to the parent, feeding tissue toward wound healing, eye injury treatment, spinal procedures, and dental applications, though not every hospital participates in such programs. Reading the consent forms carefully still matters here. Understanding that a downstream commercial market exists, even when the donation itself is genuinely altruistic, changes what informed consent actually means.

Private stem cell banking is a separate and increasingly credible option. It involves collecting, processing, and storing stem cells from placental tissue and cord blood for possible future medical use, and stem cells from these sources have documented regenerative properties, with a growing body of research into regenerative and therapeutic applications. Unlike some of the more folk-remedy options available to new parents, banking rests on an actual and growing evidence base.

Cultural and personal rituals, planting the placenta under a tree, a lotus birth, incorporating it into art, carry no legal or medical complication. They're a personal choice, and nothing about the science changes that.

Encapsulation is where the evidence turns unambiguously negative. It's sold on claims of improved postpartum mood and increased milk production, and no credible data backs either claim. Public health authorities have documented cases where encapsulation failed to eliminate infectious pathogens, including instances where newborn infections were traced back to bacteria present in the mother's placenta capsules. During pregnancy, the placenta functions partly as a filter, screening out toxins and bacteria before they reach the fetus. Ingesting it means reintroducing whatever it filtered out. Quality and safety vary by whoever's doing the processing.

Parents have more say in what happens to their placenta than the hospital's default incineration protocol suggests. Exercising that say, though, takes planning well before delivery day and clear, repeated communication with the care team, because none of these paths open up automatically once labor starts.

Sources

  1. The Great Placenta Heist: are hospitals getting rich off your afterbirth?
  2. Can I Sell my Placenta? | Gift of Life
  3. Can You Sell Your Baby’s Placenta?
  4. "From Womb to Wallet: Recognizing the Placenta’s Lawful Role in the U.S" by Christina Moss
  5. 84(R) HB 1670 - Committee Report (Substituted) version - Bill Analysis
  6. parentsguidecordblood.org
  7. polarismarketresearch.com

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