Medtronic Chairman and CEO Bill Hawkins Comments on U.S. Senate's Revised Medical Device Industry Fee Proposal
Company Applauds Leadership of Senators Amy Klobuchar and Al Franken, Governor Tim Pawlenty and the Minnesota Congressional Delegation
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Medtronic CEO
Bill
Hawkins |
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November 19, 2009 --
Minneapolis -- Medtronic, Inc. (NYSE:
MDT), chairman and CEO Bill Hawkins today issued the following
statement regarding the U.S. Senate’s
revised proposal regarding a medical device industry fee released
yesterday. This new proposal amends the Senate Finance Committee’s
earlier proposed $40 billion fee on the medical device industry.
Senators
Amy Klobuchar and Al Franken were instrumental in reducing
the size of the proposal in the Senate. Their efforts will
serve
to protect innovation and jobs while advancing meaningful healthcare
reform. |
Bill
Hawkins’ statement follows: Strong Supporter of National Healthcare Reform
“ Our healthcare system is in need of reform and Medtronic is and has been a strong supporter of reforms aimed at expanding access to affordable health insurance for millions of uninsured Americans, reducing costs and achieving greater efficiencies in the healthcare system, better managing chronic disease and improving our nation’s medical liability system. These goals are consistent with and support Medtronic’s
60-year Mission of providing our therapies to people around the world
who need them in order to extend, enhance and save their lives. We
committed early on to try and make healthcare reform a reality, and
we have lived up to our commitment.” We Are Making Important Contributions to Reform
“ Financing healthcare reform is a challenge, and Medtronic and our
industry will contribute in myriad meaningful ways. Direct savings
will be garnered from imaging, diagnostics and durable medical
equipment providers, in addition to indirect savings to be achieved.
For example, the $155 billion in cuts agreed to by hospitals might
in part be achieved through concessions and agreements with our
industry. That reality alone is estimated to cost our industry
more than $15 billion over the next 10 years. Secondly, we have
worked hard with members of both Houses to construct meaningful
Comparative Effectiveness, Value-Based Purchasing and Physician
Payment Disclosure provisions that will also provide savings to
the healthcare system. We are proud of that work and believe it
will result in value for patients and physicians. In total, these
initiatives will exceed $20 billion in contributions from our industry. “The Senate Finance Committee originally proposed a $40 billion manufacturer’s fee assessed over the next ten years, which would have brought our total industry contribution to more than $60 billion. The adverse impacts of such an “innovation tax” are
real and directly affect our ability to carry on vital research
and development activity, provide jobs, and to remain globally
competitive. “In real terms, the proposed $40 billion manufacturer’s fee would have meant nearly $300 million of additional annual costs to Medtronic’s
business alone. With this additional burden, the United
States would become the most expensive country in the world
to develop and produce medical technology.” Promising Senate and House Proposals
“ Both the House and Senate have now proposed medical device taxes or fees totaling approximately $20 billion over 10 years – half
of the original Senate proposal of $40 billion. A tax on medical
device manufacturers could have untold adverse implications for
innovation and jobs, and yet we accept the notion of shared responsibility
in meeting the challenge of expanding access to affordable, quality
health insurance for all Americans. “We
are encouraged by the progress in this area reflected in
the new Senate proposal as well as the House healthcare reform
bill passed earlier this month. The Senate and House proposals
have substantive differences in how and when these taxes
or fees would be applied to the industry, and we look forward
to continued constructive work with members of both houses
and the Obama Administration to craft a final proposal that
meets the important tests of transparency, predictability,
simplicity in administration and fundamental fairness. “While
we are encouraged by this progress, we should not lose
sight that this approach will come with a cost to our
healthcare system. This tax, though reduced, will invariably
impact our investment decisions on new therapy development,
jobs and global competitiveness. Most importantly, this
can serve to diminish patient access to new, live-saving
medical technologies. While we will work our level best
to minimize these impacts, they are real, and they should
not be overlooked.” Tremendous Leadership
“ I have been gratified by the support and tremendous leadership
on this issue by Sens. Amy Klobuchar and Al Franken, Governor
Tim Pawlenty, Representative Erik Paulsen and the other members
of the Minnesota Congressional delegation. Senator Klobuchar,
in particular, has worked tirelessly with her colleagues in
the Senate to advance healthcare reform and minimize the negative
effects such a tax could have on the medical device industry.
On behalf of our employees in Minnesota and around the world,
we offer our appreciation to her for her leadership on this
issue. “We are also thankful
to our industry colleagues, LifeScience Alley, and the
Advanced Medical Technology Association (AdvaMed) for their
collective work on this issue. “The medical technology industry has driven almost unimaginable improvements in health care – extending
life and improving the quality of care for millions
of people here and around the world. We have long believed
that medical technology is an integral solution to
the problems that afflict our healthcare system. We
thrive on the spirit of competition and innovation
in America. We are proud to support healthcare reform
and the new access it will bring for millions of people
who have been uninsured until now.” About Medtronic
Medtronic, Inc. (www.medtronic.com),
headquartered in Minneapolis, is the global leader in medical technology – alleviating
pain, restoring health, and extending life for millions of people
around the world.
Source: Medtronic,
Inc.
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