Medical Device Startups Getting Squeezed by Recession, Lawmakers, Says E&Y Report
Summary
Medical Device Startups Getting Squeezed by Recession, Lawmakers, Says E&Y Report Xconomy National — People who make a living creating innovative medical devices—whether it’s an ultrasound diagnostic tool, a stent to prop open clogged arteries, or an MRI machine—are an unhappy bunch these days.Let us count the ways, as described in the second annual medical device industry analysis being released today by Ernst & Young.That means patients are postponing elective medical procedures, and hospitals and government payers are tightening their budgets.Senator, Max Baucus, wants to raise $40 billion in taxes on the medical device industry; healthcare reformers like President Obama are talking about comparative effectiveness studies that would add time and expense to device development; and lawmakers are considering whether to require companies to disclose all gifts and payments to doctors who help develop and buy their products.Here are some highlights that caught my eye in this 60-page report: —Despite the recession, revenues of publicly traded medical technology companies in the U.S. and Europe actually climbed 11 percent to $289 billion (although the growth was only about half that much when factoring out foreign-exchange rate fluctuations and acquisitions).