Device Manufacturers Exceed $1 Billion in Payment to Government for the Imposed Excise Tax
The Medical Imaging & Technology Alliance, the Medical Device Manufacturers Association, and the Advanced Medical Technology Association recently made a stunning announcement. According to the latest figures, medical device manufacturers have paid approximately $1 billion to the Internal Revenue Service for the (government imposed) medical device excise tax. Instead of being able to allocate funds towards investing in research and development and/or creating numerous well-paying jobs for Americans, medical device manufacturers are forced to give a large percentage of their profits to the government.
Device manufacturers are required to pay approximately $194 million per month in medical device tax payments under the 2.3 percent tax. Such a hefty tax threatens the entire medical device industry. President and CEO of the MDMA, Mark Leahy said, “Each day that goes by with the medical device tax in effect is a major roadblock for patient care, job creation and innovation.” In addition, Executive Director of MITA, Gail Rodriguez stated, “The $1 billion threshold is frightening as every dollar spent paying for this medical device tax threatens medical innovation and American jobs.”
President and CEO of AdvaMed, Stephen J. Ubl said, “Repealing the device tax has strong bipartisan support and is the first step to corporate tax reform. Medical technology companies across the country are struggling to remain competitive and this tax makes their effort to grow, innovate and invest in the future that much harder.”
Please see: Medical Device Excise Tax
How Does Cornerstone Consulting Help Medical Device Manufacturers and Wholesale Distributors?
For many years, Cornerstone has collaborated with Medical Device Manufacturers and Wholesale Distributors to help them grow. The software and technology solutions Cornerstone provides can streamline and automate the business management processes of your entire enterprise. The integrated and automated software simplifies the processing of materials resource planning, customer relationship management, inventory control, warehouse management, sales, and financial accounting. For those companies within the Medical Device Industry, the device tracking is what sets this software apart from all the rest. Not only does the SAP Business One software solution streamline sales, financial, inventory, purchasing, planning and production management, it is also designed to support your research and development as well as your compliance teams.
Enterprise Resource Planning (ERP) Software for Medical Device Manufacturers and Wholesale Distributors
The SAP Business One ERP software system offers Medical Device Manufacturers and Wholesale Distributors a single platform of unified data, simple interface, easy navigation, cutting-edge dashboards and cockpits, mobility, and Crystal Reports. In addition, this software system is designed to help your business remain compliant as requirements and regulations change. With Business One you can: take control of your inventory; forecast and plan better than ever before; instantly know the exact location of your items; precisely manage the path your products; easily adjust batches; process error-free transactions and dramatically improve your bottom line.
- Bin management
- FDA compliance
- Material Requirement Planning
- Production Planning
- Purchase Planning
- Quality Control
- Lot traceability
- Financial management
- Data collection
- Bill of materials (BOMs)
Helping Medical Device Manufacturers and Wholesale Distributors More Efficient With Better Business Software
If you are the leader of a Medical Device Manufacturing or Wholesale Distribution company in need of an integrated, automated and streamlined business enterprise system, please call Cornerstone Consulting today at 813-321-1300!