Feature | February 28, 2013

Medical Device Tax Website Created to Monitor Which Vendors are Passing Tax to Hospitals

New site serves as a resource for gathering information on manufacturers not paying their shared responsibility for healthcare reform

February 28, 2013 — The Healthcare Supply Chain Association (HSCA) launched Medical Device Tax Watch, a website dedicated to raising awareness of efforts of some medical device manufacturers to pass the costs of the medical device excise tax (MDET) to American hospitals, healthcare providers and patients. The new site will be a resource for hospitals and a tool for monitoring the device marketplace, and can be found at www.devicetaxwatch.com.

The HSCA says the tax was created for device manufacturers to pay their share of the cost of healthcare reform. The organization said healthcare providers are already paying their share in the form of lower reimbursement rates. HSCA said hospitals committed $155 billion over the next 10 years to help fund the Affordable Care Act (ACA). Hospitals are now reporting that, although some suppliers are behaving responsibly, other device manufacturers are billing hospitals directly to cover the costs associated with the ACA’s medical device excise tax.

“HSCA has been alarmed to discover mounting evidence that some medical device manufacturers have chosen to tack the costs associated with the medical device excise tax directly onto their invoices, shifting the cost burden of the tax onto American hospitals, healthcare providers, patients and ultimately taxpayers,” said HSCA President Curtis Rooney. “National healthcare reform is a shared financial responsibility, and hospitals have already paid their fair share. HSCA is pleased to launch Medical Device Tax Watch as part of our ongoing effort to raise awareness of manufacturer cost-shifting efforts, and we urge all manufacturers to immediately stop passing on the costs of the medical device tax onto hospitals.”

The website includes a list of vendors who have passed along the device tax to healthcare providers. The organization is advocating that hospitals should include discussion of any passed along tax should be part of any new contract negotiations.

Beginning Jan. 1, 2013, a 2.3 percent excise tax was imposed on sales of “taxable medical devices” by manufacturers and importers. In a March 2011 letter to the U.S. Internal Revenue Service (IRS), HSCA joined the American Hospital Association (AHA), the Federation of American Hospitals (FAH), and the Catholic Health Association (CHA) in urging the IRS not to allow medical device manufacturers to pass on the cost of the device tax to hospitals.

“As hospitals, long-term care facilities and other healthcare providers face increased budgetary pressure, HSCA and its group purchasing organization (GPO) members will continue to be critical cost-savings engines, delivering the best products at the best value to the supply chain,” added Rooney. “HSCA will also continue to serve as a resource and advocate for American hospitals and healthcare providers as we monitor the medical device marketplace for evidence of unfair cost-shifting.”

For more information: www.supplychainassociation.org

Related Content

Canon Aquilion One CT Helps Gates Vascular Institute Adhere to New Stroke Guidelines
News | Computed Tomography (CT) | December 12, 2018
In stroke, time saved on imaging is time gained in the treatment window. The recently updated guidelines from the...
Coreline Soft Introduces AI Lung Segmentation Solution at RSNA 2018
News | Lung Cancer | December 10, 2018
December 10, 2018 — Korean image software company Coreline Soft Co. Ltd.
FDA Approves New Features for Planmed Verity Cone Beam CT Scanner
Technology | Computed Tomography (CT) | December 07, 2018
The U.S. Food and Drug Administration (FDA) issued an approval letter for the new features and intended uses of the...
YITU Releases AI-Based Cancer Screening Solutions at RSNA 2018
News | Artificial Intelligence | December 06, 2018
Chinese artificial intelligence (AI) healthcare company YITU healthcare released two brand-new products, Intelligent...
Guerbet Launches Multi-Use OptiVantage Contrast Media Injector in Europe
Technology | Contrast Media Injectors | December 05, 2018
Contrast agent company Guerbet recently announced that the OptiVantage multi-use contrast media injector is now CE...
GE Healthcare Unveils New Applications and Smart Devices Built on Edison Platform
Technology | Artificial Intelligence | December 05, 2018
GE Healthcare recently announced new applications and smart devices built on Edison – a platform that helps accelerate...
Infervision Introduces AI Capabilities for Chest CT Reading
Technology | Computer-Aided Detection Software | November 30, 2018
Big data and artificial intelligence (AI) company Infervision announced the launch of InferRead CT Chest, a new product...
NeuroLogica and MaxQ AI Announce Distribution Agreement
News | Stroke | November 30, 2018
Clinical diagnostics intelligence platform company MaxQ AI and Samsung NeuroLogica announced a distribution agreement...
Videos | Advanced Visualization | November 30, 2018
This is an example of the FDA-cleared OpenSight augmented reality (AR) system for surgical planning from NovaRad at t