I predicted this more than a year ago.
Obamacare’s tax on medical devices and the looming imposition of “price controls” means hospitals and other medical groups will not spend greater amounts for “next generation” devices such as dialysis systems.
Instead, the restricted spending will mean only currently approved devices will be replaced by currently approved devices.
Medical device manufacturers will need to squeeze increasing profit from current devices. The best way to do that is to outsource manufacturing to low-cost countries like China and India.
So, the United States loses manufacturing jobs in a very high-tech area and patients will be deprived of devices that result in longer lifespans or reduced fatalities.
“I predicted this more than a year ago.
Obamacare’s tax on medical devices and the looming imposition of “price controls” means hospitals and other medical groups will not spend greater amounts for “next generation” devices such as dialysis systems.”
No problem in the Worker’s Paradise of Minnesota! Can’t they just go on unemployment for several hundred weeks up there? :)
I just love it when they eat their own.
If you know anybody in this business they have one word on their lips. “China”.
There is a window of opportunity here to sell lots and lots of product to the ChiComs for a few years before they reverse-engineer it and figure out how to produce their own knockoffs.
Virtually everyone in the business is going for a piece of that pie. They expect Obamacare has shut down the growth curve here.
Global wage arbitrage strikes again.
This Medtronic operation was located in Anaheim, Ca back in the 1980s, IIRC. The SoCal plant closed in 1999 and moved to Minnesota when Medtronic acquired Avecor. California’s high costs and business-hostile environment was surely one reason for the move to Minnesota.