69% are likely to hire more U.S.-based employees & 77% are likely to invest additional resources in R&D
A new survey commissioned by the Medical Imaging & Technology Alliance (MITA) finds suspension of the medical device tax that went into effect on December 31, 2015 has already had a positive impact on U.S. jobs and innovation in the medical imaging technology sector. The survey found that 69 percent of respondents are likely to hire more U.S.-based employees and 77 percent are likely to invest additional resources in research and development (R&D) given the two year suspension.
“These survey findings confirm that suspension of the medical device tax has already helped boost investment in R&D and ignite medical technology innovation in just a few months,” said MITA Board Chairman Nelson Mendes, president and CEO of Ziehm Imaging Inc. “Full repeal of this burdensome tax will turn yesterday’s economic headwinds into tomorrow’s tailwinds, spurring sustained growth and protecting patient care. We appreciate the bipartisan efforts of Congress to address this tax and urge them to vote for full repeal when the time comes.”
The American medical technology industry is a true economic success story, providing jobs for more than 400,000 people, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000), and investing nearly $10B in research and development annually to advance patient care in the United States and around the world. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.
The survey findings provide evidence of the preliminary impact of suspension on R&D, jobs and innovation, as evidenced by the following data points:
- 69 percent of respondents are likely to hire more U.S.-based employees
- 77 percent of respondents are likely to invest additional resources in R&D
- 77 percent of respondents are likely to accelerate the completion of one or more products currently under development
- 77 percent of respondents will expand the number or scope of investigative clinical activities/partnerships with universities or other providers to validate new technologies, products or applications
- 69 percent of respondents will invest in new infrastructure
“As a result of the suspension of the tax, our members are anticipating that they will increase the number of U.S. employees,” said Patrick Hope, Executive Director of MITA. “They’ll also have a specific focus on increasing R&D that will allow them to invest in the development of new innovative medical device products for the healthcare industry.”
The 2016 MITA Device Tax Suspension Impact Survey was designed to explore the initial effects of the two-year suspension of the medical device tax on R&D, employment and investment in operations infrastructure. MITA commissioned NEMA/Business Information Services (NEMA/BIS) to conduct a survey of its board members and company CEOs. The respondents represent in excess of 60 percent of medical imaging manufacturers in the United States.
About The Medical Imaging & Technology Alliance (MITA)
The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment, radiation therapy and radiopharmaceutical manufacturers, innovators and product developers. It represents companies whose sales comprise more than 90 percent of the global market for advanced medical imaging technology. For more information, visit www.medicalimaging.org.