Navigation Links
Medical Device Tax Belongs to Medical Device Industry, States Novation
Date:1/23/2013

IRVING, Texas, Jan. 23, 2013 /PRNewswire/ -- The community-based, pediatric and academic hospitals served by Novation are reporting that many are being directly billed by at least one medical device manufacturer to cover the costs associated with the Affordable Care Act's medical device tax.  But Novation, the leading health care supply chain expertise and contracting company for the members of VHA Inc., UHC, Children's Hospital Association, and Provista LLC, is taking a firm stance with suppliers who are trying to pass their medical device excise tax obligations on to hospitals. 

While the administration of the Medical Device Excise Tax is complex and still evolving, it is clear that Congress did not intend to impose this tax on hospitals.  At the onset of the Affordable Care Act (ACA), the government put in place various financing measures as a way to ensure the cost of health care reform would not add to the federal deficit.  These range from revenue-raising measures such as taxes to payment reductions such as reduced Medicare reimbursements.  Congress's intent was to evenly distribute the costs associated with providing health care services to millions of additional Americans throughout the health care industry.

Despite their slim operating margins, health care providers committed to $155 billion over 10 years.  Likewise, the pharmaceutical industry committed to $80 billion.  Medical device manufacturers, however, refused to voluntarily contribute.  As a result, the government imposed the Medical Device Tax to cover their portion.  This Tax was specifically intended to be a tax on the manufacturer.  Even then, by comparison, the Tax is anticipated to amount to roughly $20 billion over 10 years.

"Novation is taking a firm position with manufacturers that the Medical Device Tax may not be passed onto the hospital members we serve," says Jody Hatcher , President and CEO of Novation. "While most device manufacturers are taking responsibility for this Tax, there are some manufacturers attempting to pass their obligation on to hospitals.  This Tax should be the responsibility of the manufacturers, and Novation is dedicated to ensuring that member hospitals are impacted by it as little as possible."

About Novation, Winner of the Ethics Inside® Certification

Founded in 1998, Novation is the leading health care supply chain expertise and contracting company for the more than 65,000 members of VHA Inc. and UHC, two national health care alliances, Children's Hospital Association, an alliance of the nation's leading pediatric facilities, and Provista, LLC. Novation provides alliance members with sourcing services, as well as information and data services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC, and Provista members used Novation contracts to purchase approximately $43 billion in 2012. Novation earned the coveted Ethics Inside® Certification from Ethisphere Institute, a leading international think tank dedicated to the research and promotion of best practices in corporate ethics and compliance.  Novation was also named on Ethisphere's World's Most Ethical Companies list, and is the only company in the health care industry to earn both distinctions.  To learn more about Novation, please visit www.novationco.com and follow @NovationNews.


'/>"/>
SOURCE Novation
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Hopkins Medical Products Introduces Portable Wireless Wheelchair Scale
2. Aethlon Medical To Present Today At The 15th International Conference On Dialysis
3. Medical Specialty Bags Market - Global Industry Size, Market Share, Trends, Analysis And Forecast, 2012 - 2018
4. Hospira and Q Core Medical Sign International Distribution Agreement for Sapphire Infusion System
5. Johnson & Johnson Presents Growth Strategies for Medical Devices & Diagnostics Segment
6. BioElectronics Announces South Korean Patent Allowance for its Innovative OTC Pain Relief Medical Devices
7. Concentra Expands Medical Services within the Dallas-Fort Worth area
8. Medical Implant Manufacturer RMI Achieves AS9100C Aerospace Certification to Provide Products to the Aviation, Defense and Space Industries
9. Aethlon Medical Announces the Appointment of Laszlo Radvanyi, Ph.D. to its Scientific Advisory Board
10. Global Medical Device Marketing Groups Respond to Internal Cost Pressures
11. OncoSec Medical to Present at Noble Financial Capital Markets Ninth Annual Equity Conference on January 22
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/21/2017)... 2017 Patient Monitoring Equipment ... to monitor physiological signs. These devices are either used ... patient monitoring is one of the key factors for ... the market. Hence, vendors are developing technologically advanced products ... can send test results on time and provide better ...
(Date:2/21/2017)... , Feb. 21, 2017 The global ... CAGR of 6.0% from 2016 to 2021, to reach ... in 2016. Increasing prevalence of chronic diseases along with ... to reduce hospital expenditure, steady increase in surgical procedural ... management are some of the key factors driving the ...
(Date:2/21/2017)... Feb. 21, 2017  Luminex Corporation (NASDAQ: LMNX ... has authorized the initiation of a quarterly cash dividend to ... cash dividend will be payable on April 14, 2017 to ... March 24, 2017. The board of directors ... dividend of $0.06 to holders of its common stock, representing ...
Breaking Medicine Technology:
(Date:2/22/2017)... , ... February 22, 2017 , ... Social media marketing ... for hospitals and health systems. Smith & Jones’ delves into this insight and more ... President of Smith & Jones David Vener meets up with social media strategist and ...
(Date:2/22/2017)... ... ... BrightStar Care Charleston , a home care and medical staffing agency, will ... on Aging’s Senior Expo on Thursday, March 23, 2017, at the Omar Convention ... our community. We are thrilled to participate in this event because we believe it ...
(Date:2/22/2017)... ... February 22, 2017 , ... In ... advocates stress that the patient context (age, illness and life choices) should be ... mitigate their occurrence. In addition, all too often, studies regarding health ...
(Date:2/22/2017)... ... February 22, 2017 , ... Apptricity® Corporation, a leading ... spend management, today announced that Keppel Corporation has selected Apptricity Travel and Expense ... , “We are excited to announce the partnership between Keppel and Apptricity for ...
(Date:2/21/2017)... Australia (PRWEB) , ... February 22, 2017 , ... Author ... it is valuable for every household and family to know all about it for ... publishing world with the release of “ Detox, Digestive and Wellness Solutions ” (published ...
Breaking Medicine News(10 mins):