The US 2.3% medical devices tax is reinstated, impacting the medical manufacturing industry
Previously suspended in 2015 as a result of the medical manufacturing industry’s concerns surrounding research and development within the healthcare industry, the medical devices tax has been reinstated.
Established back in 2013 in order to support the Affordable Care Act in the US, the medical device tax came back into force at the start of January after an unsuccessful last-bid by Republicans to delay or eradicate the tax coming back into force.
The billion-dollar industry, responsible for all medical products such as pacemakers, catheters and heart stents, will now be increasingly impacted by the reinstatement of the tax, which they have claimed stifles innovation and future investment within research and development into new, exceptional healthcare products.
"What we have seen from past experience is that it comes out of funding for product development, research and the jobs associated with those things," explained J.C. Scott, the Advanced Medical Technology Association (AdvaMed’s) Head of Government Affairs.
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"We fear we will see employment freezes or reductions and a slowdown in the pipeline for medical innovation." The implementation of the tax will mean the termination or reduction of over 20,000 medical roles and strongly impact SMEs specialising in medical devices.
Last month, AdvaMed wrote an open letter to President Trump, urging for an eradication of the tax and providing further solutions to the issue at hand surrounding the ongoing complexities within the US healthcare funding model.
CEO of AdvaMed, Scott Whitaker, said: “In 11 days, the medical device excise tax is set to be reinstated. I am writing to you to underscore the devastating impact this tax has and will have on our industry.
I know you have long supported repealing this onerous tax. I want to emphasise why, unlike other business taxes, retroactive relief from the device tax is not feasible and why action this year is essential.”
The industry is now holding out hope that the tax will be repealed before companies will need to restart payments at the end of each month, over $70mn per annum.
Introducing Dosis - the AI powered dosing platform
Cloud-based platform Dosis uses AI to help patients and clinicians tailor their medication plans. Shivrat Chhabra, CEO and co-founder, tells us how it works.
When and why was Dosis founded?
Divya, my co-founder and I founded Dosis in 2017 with the purpose of creating a personalised dosing platform. We see personalisation in so many aspects of our lives, but not in the amount of medication we receive. We came across some research at the University of Louisville that personalised the dosing of a class of drugs called ESAs that are used to treat chronic anaemia. We thought, if commercialised, this could greatly benefit the healthcare industry by introducing precision medicine to drug dosing.
The research also showed that by taking this personalised approach, less drugs were needed to achieve the same or better outcomes. That meant that patients were exposed to less medication, so there was a lower likelihood of side effects. It also meant that the cost of care was reduced.
What is the Strategic Anemia Advisor?
Dosis’s flagship product, Strategic Anemia Advisor (SAA), personalises the dosing of Erythropoiesis Stimulating Agents (ESAs). ESAs are a class of drugs used to treat chronic anaemia, a common complication of chronic kidney disease.
SAA takes into account a patient’s previous ESA doses and lab levels, determines the patient’s unique response to the drug and outputs an ESA dose recommendation to keep the patient within a specified therapeutic target range. Healthcare providers use SAA as a clinical decision support tool.
What else is Dosis working on?
In the near term, we are working on releasing a personalised dosing module for IV iron, another drug that’s used in tandem with ESAs to treat chronic anaemia. We’re also working on personalising the dosing for the three drugs used to treat Mineral Bone Disorder. We’re very excited to expand our platform to these new drugs.
What are Dosis' strategic goals for the next 2-3 years?
We strongly believe that personalised dosing will be the standard of care within the next decade, and we’re honored to be a part of making that future a reality. In the next few years, we see Dosis entering partnerships with other companies that operate within value-based care environments, where tools like ours that help reduce cost while maintaining or improving outcomes are extremely useful.
What do you think AI's greatest benefits to healthcare are?
If designed well, AI in healthcare allows for a practical and usable way to deploy solutions that would not be feasible otherwise. For example, it’s possible for someone to manually solve the mathematical equations necessary to personalise drug dosing, but it is just not practical. AI in healthcare offers an exciting path forward for implementing solutions that for so long have appeared impractical or impossible.