The “Presidential” Debate Over the Future of the Medical Device Tax

by Todd McDonald on November 20, 2012

The presidential election is finally over!

At last, the incessant phone calls during dinner have subsided, the barrage of political ads on television has ended and the avalanche of political mailers is no longer taking over our mailboxes.

However, the debate continues – but the topic has shifted to how the results of the election will affect our future.  And the medical device manufacturing community is no exception.

In fact, according to the recent QMed article, Obama’s Reelection and the Fate of the Medical Tax, some medical device manufacturers are hyper focused on preparing for the ramifications of the 2.3 percent device tax hike that is part of the President’s Affordable Care Act, while others remain cautiously optimistic that it can repealed before it goes into affect in January of next year.

Whether this tax is repealed or not, its mere existence ensures finding ways to improve efficiency and control costs in the medical device manufacturing industry has never been more important.

That’s why, at TEQ, it is our goal to help each of our manufacturing partners examine their supply chains for every project, new and old, to find innovative ways to streamline their workflow processes. This process can mean creating custom tools, redesigning comprehensive yet flexible supply chain solutions or even moving entire manufacturing operations and supply networks back to the U.S.A. and closer to product demand – including the design and management of on-location modular ISO 13485: 2003 Registered clean room facilities.

It’s also why we constantly look for ways to create new and improved materials to work with, such as TEQethylene™,  our 100% recyclable monopolymer medical packaging solution that utilizes a new, proprietary blend of High Density Polyethylene (HDPE) in combination with adhesive coated TYVEK®, a breathable HDPE thermoplastic lidding material developed by DuPont™. In addition to the obvious environmental benefits, customers that have chose to use TEQethylene™ vs. PETG for medical packaging will be saving over a million dollars next year alone.

Of course, supply chain strategies and material selection are only two aspects of maximizing efficiencies when it comes to medical device manufacturing and offseting the possible effects of this proposed tax. What about you? What are some innovative strategies your company is incorporating to control manufacturing costs?

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