MASSDEVICE ON CALL — The 2.3% medical device tax created by President Barack Obama’s Affordable Care Act is projected to raise more than $422 million this year from the top 19 public and private medical device makers in Massachusetts alone, according to a new analysis by the Bay State’s Pioneer Institute.
The funds are intended to help expand health insurance access for many Americans, but there are trade-offs, the analysts warned. Potential down-sides include lost jobs, chopped research & development budgets and more state dollars funneled to Washington D.C.
"While some will gain insurance coverage, the individuals and industries taxed will make adjustments to their behavior or mode of conducting business," according to the report. "Undeniably, the medical device tax will impact the industry locally for the foreseeable future. Policymakers have to ask themselves if the potential benefits are worth the downside risks of employment loss, declines to future funding for research and development, higher prices for end users, and more private dollars being sent out-of-state in the form of new taxes."
The report further projected the individual impact on the 19 largest Massachusetts medical device makers, finding that the companies will owe an average of about 1.5% of their total revenues in order to comply with the sales tax on applicable medical devices, based on revenue figures from 2011.
Estimates for the top 5 Massachusetts companies are as follows:
|Company||MA Employees||Total Revenue||Estimated Tax Base||Estimated Tax (t=2.3%)|
|Boston Scientific Corp.||2,825||$7,622,000,000||$4,010,000,000||$92,230,000|
|Smith & Nephew Endoscopy||795||$4,270,000,000||$1,756,000,000||$40,388,000|
Check out the Pioneer Institute report for the full analysis.
Remote monitoring may reach nearly $300M this year
Remote patient monitoring technologies topped $104 million in 2012 and are projected to more than double reaching almost $300 million this year, according to research analysts.
"Pause before posting," physicians’ group warns
The American College of Physicians issued some cautionary guidelines for physicians active on social media, advising them to "pause before posting" and to avoid "friending" patients online.
Senate Republicans wary of pressure on electronic medical record adoption
A group of Republican Senators this week released a detailed criticism of a $35 billion initiative designed to encourage more healthcare providers to adopt electronic medical record systems.