The Indiana-based company blamed a looming tax on medical devices as the reason for scrapping the expansion plans.
The Affordable Care Act imposed the tax of 2.3 percent on medical devices beginning in 2013. Cook Medical claimed the tax would cost the company $15-$30 million a year. The company’s vice president for federal affairs said the company would consider expanding overseas instead.
The House passed a bill repealing the tax in June. The Senate has not taken up the repeal bill.
Related Articles on Medical Devices:
Reflectance Medical Receives FDA Clearance for Oximeter
Proteus Digital Health Receives FDA Clearance for Ingestible Sensor
Covidien Receives FDA Clearance for Bedside Patient Monitoring System
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
