Even larger companies will be hit hard by the tax, which was enacted by the Patient Protection and Affordable Care Act and went into effect Jan. 1. Zimmer Holdings, based in Warsaw, estimated the tax will take $50 million in the second half of 2013, about 43 percent of total cash flow from 2012, according to the report.
The language of the tax will also not allow companies to simply raise prices to make up the difference. According to Brian More, chief financial officer for Columbia City-based Nanovis, hospitals will only pay what they can afford for devices and will negotiate down from companies’ requests. “The tax doesn’t ever have a chance to come into it,” he said in the report.
More Articles on Devices:
8 Orthopedic & Spine Device Company Leadership Changes
Lanx Completes $15M Financing Round
A Model for Clinical, Financial Success in Orthopedics
At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 18–20 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.
