The Affordable Care Act has changed the landscape for a wide range of medical providers, including companies that design, manufacture, and market medical devices. Included in the law is a new tax on medical devices. Despite recent attempts to repeal this tax, it has remained on the books – affecting medical device companies nationwide that must incorporate the new rules into their everyday operations.
What Changes Do We Face?
The new law institutes a 2.3 percent excise tax on a wide range of medical devices. Devices that are included in the new tax range from CAT scan machines to pacemakers and artificial joint replacement systems. Over-the-counter medical devices, like wheelchairs, hearing aids, and glasses are not subject to the tax.
The new tax poses a risk to research and development of new medical devices, according to some analysts who fear that the revenue generated by giving more people access to healthcare will not be enough to offset the cost of the tax. Other analysts argue that while certain types and categories of medical devices may take a blow, others will see an increase in use and therefore in revenue.
The new tax faces stiff political competition as well. Supporters of the tax note that it is expected to raise $30 billion over ten years. Opponents of the tax have been pressed to find a way to replace the lost revenue the tax is expected to generate.
How Do These Changes Affect Our Job Needs?
The challenges posed by this new tax are substantial for many medical device companies. Companies of all sizes will have to reconsider how they approach research and development, looking for ways to save costs while maximizing productivity. Researchers themselves may need to shift focus, either to new lines of medical devices or to new, cost-effective ways to create existing devices. Some companies may need to enlist the help of one or more financial professionals to ensure the company is meeting all the requirements of the new law.
Companies seeking the talent they need to face the recent tax law changes will benefit from working closely with a staffing partner with experience in the medical device industry. Your staffing partner can help you find the top talent you need to face new and emerging challenges in medical device work.
The experienced recruiters at Marquee Staffing can help you find the people you need to face any challenge. Contact us today to learn more!