One of the most important industries in the United States may be in trouble – and no, we’re not talking about automobiles or big banks. The medical device industry, which employs 400,000 Americans directly and another 2 million more indirectly, is being “ravaged by unwise public policy” according to a recent article in Forbes.
One of the few major industries that is not only a job creator but also boasts a net trade surplus, the medical device sector is reportedly being hampered by a 2.3% excise tax as part of ObamaCare. The tax, which is assessed on gross sales and not profits, could be considered another burden on medical device companies that in some cases must bring in tens of millions of dollars before ever turning a profit.
According to Forbes, the excise tax comes on top of “increased stringency and delays” at the U.S. Patent Office and FDA, and at the same time many of these manufacturers are closing their doors or moving to Europe to take advantage of a more “favorable tax and regulatory climate.” In addition, the excise tax has forced many companies to lay off workers, cut back on R&D, and reduce capital investment.
Although the President supports the excise tax, there has been some push back from some members of Congress looking to repeal this piece of legislation. Despite the tax and the back and forth battle between government leaders, the U.S. remains the global leader for medical device manufacturing – at least for now.
The industry of medical devices may be in limbo, however securing medical equipment rentals in your area is no problem thanks to The Medcom Group. Helping patients across the nation since 1988, The Medcom Group offers a wide array of orthopedic rehabilitation equipment and supplies from some of the best names in the business.
Whether you are looking for CPM or SCD machines or pumps and other therapy equipment, Medcom has the rental products you need to get back up to full speed. Medcom also offers competitive pricing and will repair any medical device they supply.
Committed to providing some of the best customer service in the industry, Medcom helps its customer understand the equipment and looks to build long-lasting relationships with its clients. Medcom has been accredited by the Joint Commission and is also a member of the Women’s Business Enterprise National Council.