Medical Device Tax Already Hurting Jobs, Innovation

With a looming medical device tax of 2.3 percent of sales, many companies are already cutting jobs and outsourcing production to less expensive countries, according to a Bloomberg News report.

In November, Stryker, which produces artificial hips and knees, announced that it would lay off about 1,000 workers. Earlier last year, Covidien, maker of surgical instruments, said it would lay off 200 workers in the U.S. and move production to Costa Rica and Mexico. Both companies cited the tax. Currently medical device companies employ more than 400,000 Americans at higher than average wages. The tax is expected to go into effect next year.

Related Articles on Medical Devices:

FDA Bans Oridion Systems From Importing Medical Devices Into the U.S.
Massachusetts Life Sciences Center Awards $2.2M in Loans to Medical Technology Startups
FDA Targets Risks From Reused Medical Devices

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