Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.
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5. Senate’s Trumpcare version would cut insurance for 22 million, abolish medical device tax
Chances for the repeal and replacement of Obamacare grew even slimmer yesterday after the Congressional Budget Office said the U.S. Senate’s version of Trumpcare would cut health insurance for millions of Americans.
Like its counterpart in the House of Representatives, the Senate bill would repeal the medical device tax as of Dec. 31 and slash the number of people enrolled in federal health insurance programs by 2026. The number of uninsured would rise by 23 million by 2026 under the House version and by 22 million under the Senate bill, according to the CBO. Read more
4. Report: Medtronic misses Memphis jobs target despite tax break pledge
Medtronic has reportedly increased its workforce at its spine business in Memphis by only 14.3%, despite pledging 11 years ago to a 49% increase to win $20 million in local tax breaks, but far exceeded investment and wage commitments.
Back in 2006, Fridley, Minn.-based Medtronic promised to boost its local employment from 1,225 workers to 1,825, but recent cuts to the Bluff City workforce put that number at roughly 1,400, the Memphis Commercial Appeal reported. Read more
3. Hill-Rom deals Völker bed biz to CoBe Capital
Hill-Rom said today that it’s dealing its Völker business, which makes hospital and long-term care beds for the European market, to CoBe Capital for an unspecified amount.
The deal, expected to close during the 4th quarter, includes operations and workers at a Völker plant in Witten, Germany, Chicago-based Hill-Rom said. The company paid $85 million in 2012 for Völker, which put up sales of about $40 million last year. Read more
2. Medtronic plays catchup after week-long IT outage
Medtronic is playing catch-up after restoring its global computer system designed to track manufacturing and customer orders, which was brought down for a full week by an internal technical issue, according to a Minneapolis Star Tribune report.
A spokesperson for the company told the paper that its computers were up and running again yesterday, a week after the problem took the system down. Read more
1. Boston Scientific sets its sights on double-digit earnings growth
Boston Scientific today revealed its plan to improve operating margins over the next few years, setting its sights on earnings growth of at least 10%.
The Marlborough, Mass.-based medical device giant, ahead of an investor presentation today in New York, said it wants to hit an adjusted operating margin of 25% this year and 28% in 2020. Boston Scientific, which has seen its fortunes turn for the better since CEO Michael Mahoney took over in 2013, also said it’s aiming for “consistent” double-digit growth for adjusted earnings per share and an organic revenue compound annual growth rate of 6% to 8% for 2018 to 2020. Read more
