Hospital groups are concerned that medical device manufacturers will pass on a 2.3 percent tax on their products to hospitals and other providers, according to a letter the groups sent to the Internal Revenue Service.
In the letter, the AHA, Federation of American Hospitals, Catholic Health Association and Health Industry Group Purchasing Association urged the IRS to prohibit device manufacturers from pushing the tax, which becomes effective in 2013 under the healthcare reform law, onto healthcare providers.
"We believe this is appropriate public policy, and reflects the true intent of Congress in establishing the 'shared responsibility' network of stakeholders," the letter stated.
Read the letter from the AHA and other groups on healthcare reform (pdf).
Read other coverage about the medical devices:
- Proposed Legislation Seeks to Repeal Tax on Medical Device Company
- Medtronic's Sudden Contract Exit May Signal Negative Trend for GPOs
- FDA Proposes Medical Device Innovation Initiative
In the letter, the AHA, Federation of American Hospitals, Catholic Health Association and Health Industry Group Purchasing Association urged the IRS to prohibit device manufacturers from pushing the tax, which becomes effective in 2013 under the healthcare reform law, onto healthcare providers.
"We believe this is appropriate public policy, and reflects the true intent of Congress in establishing the 'shared responsibility' network of stakeholders," the letter stated.
Read the letter from the AHA and other groups on healthcare reform (pdf).
Read other coverage about the medical devices:
- Proposed Legislation Seeks to Repeal Tax on Medical Device Company
- Medtronic's Sudden Contract Exit May Signal Negative Trend for GPOs
- FDA Proposes Medical Device Innovation Initiative