Time to Innovate: Ensuring A Future Without the Medical Device Tax
One of our MES sales executives, Eileen Sullivan-Scully, was recently featured in Med Device Online discussing the suspension of the medical device tax in the US last December.
The 2.3 per cent tax on profits, colloquially known as ObamaCare, was introduced in the first half of 2013 to help fund the Patient Protection and Affordable Care Act (PPACA).
Eileen explains the huge impact that the medical device tax has had on the industry, including the reduction in funding to drive innovation and fuel growth in the sector. The tax has also had a negative effect on employment within the industry, with many companies putting their recruitment plans on hold.
However, there are now signs that medical device manufacturers are taking advantage of the two-year suspension of the tax, which has been in place for over six months.
This includes more small and medium sized companies investing in R&D and infrastructure and adopting new technologies such as manufacturing execution systems (MES) to generate efficiencies and improve manufacturing processes. The tax break also presents the opportunity for more global collaboration.
Read the full article to learn in more detail how the tax suspension has benefitted medical device companies and what the future may hold.