INDUSTRY UPDATE_News and Notes
Staff Reports
EXCLUSIVE MEDICAL SOLUTIONS, IMAGE QUEST ANNOUNCE TRANSITION rapid growth and is looking forward to more growth Exclusive Medical Solutions Inc., a preferred medin 2016 and beyond, according to the press release. ical imaging equipment supplier, has acquired the Image Quest CEO Diane Geddes said the decision ultrasound division of Image Quest Inc. effective to offset the ultrasound assets to Exclusive Medical January 1, 2016. Exclusive Medical Solutions and Image Quest Inc. Solutions was a perfect solution to ensure ultrasound customers continue to receive the customer have teamed together for the past two years providsupport they have come to rely on. ing customer support for ultrasound probe repairs, She added that RepairMED has experienced a parts and service. surge in growth in 2015 as the medical community “This acquisition will further our ability to meet became familiar with its work. the goal of providing top-notch customer service Geddes encourages her ultrasound customers across the country,” according to an Exclusive Medto continue working with Exclusive Medical Soluical news release. “It will solidify Exclusive Medical tions for a complete ultrasound solution, and looks Solutions of being the source for all your medical forward to supporting the HTM industry with comimaging demands.” ponent level depot repairs through RepairMED. • Exclusive Medical Solutions has experienced
ANALYST: SUSPENSION OF TAX WILL REJUVENATE U.S. MARKET the assumption that greater access The suspension of the medical to health care coverage would create device excise tax, which was implemented in 2013 as part of the Patient a larger market for medical devices. However, the first half of 2013 saw Protection and Affordable Care Act, the tax raising only 60 percent of the will have positive consequences for expected amount. the U.S. medical device market over “As well as lacking effectiveness, the next few years, says an analyst the tax had many costly consequences with research and consulting firm for manufacturers, and was particuGlobalData. larly crippling to smaller companies, The tax, which imposed a 2.3 which were forced to face challenges percent tax on the domestic sales such as layoff s, cuts to research and of medical devices in the U.S., to be development eff orts, and delayed paid by manufacturers or importers, was suspended on December 18, expansion plans,” Ryan says. “The tax also threatened to seize much of the 2015, after the Consolidated Appromoney spent on product innovation priations Act, 2016 was signed, and advancement in the U.S. mediwhich induces a two-year moratocal device market, which was already rium on the tax, effective January 1, struggling under stringent regulatory 2016 to December 31, 2017. and reimbursement procedures.” According to Jennifer Ryan, The analyst adds that there were GlobalData’s analyst covering medical further concerns that patient welfare devices, the tax was originally implemented to generate around $30 billion would be affected by U.S. companies in funds to support the PPACA, under looking to market products through WWW.MEDICALDEALER.COM
distribution channels overseas in order to avoid strict regulations, thereby preventing U.S. patients from accessing the latest technologies. GlobalData believes the repeal of the act will be a relief to small and mid-sized companies, which were struggling under its weight over the past three years. However, this will be short-lived unless further legislative action is taken, and as the medical device excise tax is set to be automatically reinstated on January 1, 2018. “While there are clear arguments for making the repeal permanent, there are other consequences to take into account, as funds originally garnered from the medical device excise tax, largely used to back the PPACA, will need to be found elsewhere to prevent any negative effects on the U.S. health care market,” Ryan concludes. • MEDICALDEALER 15