AdvaMed & BioOhio Discuss MedTech Impact on Ohio's Economy, Job Creation
Call for Repeal of Medical Device Tax
COLUMBUS, Ohio, May 14, 2012 /PRNewswire-USNewswire/ -- Top leaders representing America's advanced medical technology and diagnostics industry came together today to discuss pressing public policy issues affecting job creation and medical innovation and to call for the repeal of the more than $20 billion medical device tax set to begin in January 2013.
U.S. Reps. Patrick J. Tiberi (R-Ohio) and Jim Renacci (R-Ohio) joined Walter M Rosebrough, president and CEO of Mentor, Ohio-based STERIS, and Mike Lynch, executive vice president of Dublin, Ohio-based Cardinal Health, along with Advanced Medical Technology Association (AdvaMed) President and CEO Stephen J. Ubl and BioOhio CEO Tony Dennis, in the policy discussion.
The group had a simple message: The medical technology industry is not only critical to quality health care, but to the creation of innovative new jobs in Ohio and across the country.
Medical technology companies – in Ohio and across the country – are world leaders in the development of new medical devices, diagnostics and essential equipment for patients worldwide, but that leadership is at risk.
"Our industry can be a partner in job creation and an engine for growth for our national economic recovery but public policies need to support that growth and allow us to compete on the global stage. Repealing the device tax is an important first step," Ubl said.
Medical technology is one of the only American manufacturing sectors that has a net trade surplus, exporting $5.4 billion more than it imports. It also accounts for 40 percent of the global technology market. But the U.S.'s lead has shrunk dramatically in the last decade, and we stand to lose further ground with the new tax.
To preserve and protect those jobs and the life-changing innovations created locally, AdvaMed and its member companies have developed a comprehensive Competitiveness Agenda. The agenda focuses on innovation, regulatory, reimbursement, tax and trade policies to drive the U.S. medical technology industry's future growth and success. A copy of the agenda can be found here: http://advamed.org/MemberPortal/Issues/CompetitivenessAgenda.
In Ohio alone, medical technology manufacturers employ more than 35,300 people, paying an average annual wage of $42,689.
Tony Dennis, President and CEO of BioOhio, said: "This is a significant industry for Ohio, not just for corporate expansions and new companies, but also because it provides a path for the continued revival of our manufacturing sector with more traditional companies diversifying into medical devices."
What concerns companies STERIS and Cardinal Health is that the 2.3 percent device tax will hinder medical innovation and result in the loss of up to 43,000 American jobs – some possibly in Ohio.
"We are at a critical time for the U.S. economy; and tax and regulatory policies from Washington can either help or harm American economic growth, innovation, and global competitiveness," said Rosebrough of STERIS. "Much-needed med-tech jobs growth is at risk in Ohio. We have the opportunity to continue to lead the world in medical technology, but only if we all work together to improve the competitive position of American companies."
Cardinal Health's Lynch echoed Rosebrough's sentiment, "Repeal of the device tax will help real jobs in real places like Dublin, Ohio. Repealing it will enable companies like ours to enable healthcare to be more effective and efficient. And repeal will help ensure our industry can continue to innovate and compete successfully around the globe."
AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.
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