DEVICE MAKERS PASSING ON DEVICE TAX (Orthopedics This Week)
Now that the first $97 million of the new device tax has been collected by the government, it raises the questions of who is paying the price of the 2.3% tax.
We’ve seen numerous reports that thousands of laid-off workers from device companies have paid for the tax with their jobs. Other reports from device makers say that cuts to research and development budgets means patients who will not receive new treatments will suffer.
Purchasers Alarmed
Now hospital purchasing groups are complaining that some device companies are attempting to pass the new tax on to them.
On January 25, 2013, the Healthcare Supply Chain Association (HSCA) and its group purchasing organization (GPO) members expressed alarm over evidence that some medical device manufacturers are shifting the burden of the medical device excise tax directly to American hospitals and other healthcare providers.
HSCA President Curtis Rooney said, “It is disheartening to find that some medical device companies have chosen to tack the tax right onto their invoices. We urge all manufacturers to immediately stop passing the medical device tax on to American hospitals, and ...
