Small and large medtech companies are dealing with the medical device tax in different ways.
A criticism of the 2.3% tax on medical device sales heaped on the medtech industry as part of the Affordable Care Act has been that it disproportionately impacts small companies, which are required to pay the levy even if they don’t turn a profit.
But small medtech firms were less likely than their larger counterparts to take steps to reduce the tax’s impact on their bottom line, according to a recent survey of 685 U.S. medical device executives by Emergo Group.
The reason could be twofold, the consulting firm posited: “Smaller companies have fewer options for dealing with costs of the tax, and it is less noticeable to them than [to] a large company.”
This infographic shows how companies of different sizes are dealing with the device tax.
(click to enlarge)