You're watching...
Dr. Eric Schnipper on the medical device tax’s effect on patients and doctors, and how it will affect the future of medical devices.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- ruling its ruling on Obama -- means that a new tax on medical devices will start next yeah.
Major implications for the device manufacturers and the patience to.
Doctor Eric -- is -- Radiologist and a frequent guest on this program -- to welcome back register now you've said this is this tax on medical device maker is a double whammy.
The first hit goes to the device makers themselves tell me.
They have a 2.3 percent tax not on profit.
-- on gross revenue and sales which translates to a 15% tax on their profits when you get it all up.
It's twenty billion dollars overall which is double their annual or indeed expenditure -- -- -- second.
Its attacks on them on the gross revenues 2.2 percent got -- billions of dollars.
When they just pass that along and raise the price of a new hip or shoulder -- and evidence it's going to be very hard -- to do that why.
Take radiologists for example radiologists have had reimbursement cuts six times over the past seven years so in essence there's hardly anybody buying equipment right now.
So since the doctors and providers have been hit in the -- have been hit.
There or in -- situation.
Where they can't sell their equipment and now they're gonna have a tax above and beyond the second UUU good six reimbursement costs of the money you received from performing your sons.
Has -- caught six times a sort this goes back on Deficit Reduction Act of 2007.
And then radiology was actually the only specialty specifically listed.
In the Affordable Care Act for specific cuts all right now second whammy goes to patients right because of this device tax spell that out how to of the patient taking -- -- so let's talk about what happens when devices aren't manufactured.
Early detection doesn't occur as simply.
Life extending life saving drugs pain relief.
Benjamin zucker has a study -- -- -- that approximately one million patient years of life will be lost.
Because of device tax creating a situation -- research and development.
Doesn't happen as effectively you go along with -- -- things now about you know it's tough to predict but I got to tell you that a lot of these companies are actually small companies some of the best innovative companies or.
Our small ones that don't have 500 employees they will not be able to weather the storm and the larger ones like General Electric have moved out of the country -- was in Wisconsin for a hundred years.
Their medical imaging -- course I was in China.
Comedian.
And how far behind is the US and our device technology.
Well we're gonna be far behind in the go to -- -- for the moment we are in the real problem is if you start looking at what has Europe done.
In terms of device technology development of last 2030 years it's really all come from the states so who is going to be the vanguard in the world the world leader that's tough call and you know I don't know why we're doing this it's just not necessary force Microsoft to Eric -- for you straight to the point we appreciate that thank -- -- interesting information doctor.
