Thank you Prez Obama!

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Anonymous

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"Zimmer plans cuts and outsourcing at its Warsaw, Ind., headquarters partially to offset the impending burden of a 2.3% medical device tax. Zimmer Holdings (NYSE:ZMH) announced layoffs at its Warsaw, Ind., headquarters, pointing to the expected burden of the medical device tax as partly responsible for some of the losses. The orthopedics device maker plans to offset the entire burden posed by the impending 2.3% device levy in 2013 through cost-cutting efforts, part of which include layoffs."

Thank you very much President Obama! Great way to increase employment in US of A! I will vote coming November and keep you in mind.
 



Anonymous said:
"Zimmer plans cuts and outsourcing at its Warsaw, Ind., headquarters partially to offset the impending burden of a 2.3% medical device tax. Zimmer Holdings (NYSE:ZMH) announced layoffs at its Warsaw, Ind., headquarters, pointing to the expected burden of the medical device tax as partly responsible for some of the losses. The orthopedics device maker plans to offset the entire burden posed by the impending 2.3% device levy in 2013 through cost-cutting efforts, part of which include layoffs."

Thank you very much President Obama! Great way to increase employment in US of A! I will vote coming November and keep you in mind.
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Not the original OP here, but before anyone screams at this poster for blaming Obama and trying to "twist" the facts, here's further evidence to the point that Obamacare and his policies are a disgrace: the AAOS estimates that 43,000 jobs will be cut in the orthopaedic device field alone to offset the med device tax. That's more than a full 10% of the job growth rate required throughout the entire working sector to get the economy back on the right track on on its way out of the recession - from our industry alone! Not to mention that the ever-increasing price of fuel drives the cost of business higher, from the cost of raw material deliveries, to the cost of corporate utilities to the cost of you and me driving around our territories. This is one industry where the increased cost of goods cannot be passed along to customers, since we are dealing with payors who have all the control nowadays. So the only thing left is to cut headcount expenses in order to maintain the bottom line. Be sure to vote for real Change in 2012. Gas prices in Europe are nearly $10 a gallon - that's Change you and I cannot afford, and neither is a mentality that thinks Obamacare does not cost us all significantly.
 



Anonymous said:
Not the original OP here, but before anyone screams at this poster for blaming Obama and trying to "twist" the facts, here's further evidence to the point that Obamacare and his policies are a disgrace: the AAOS estimates that 43,000 jobs will be cut in the orthopaedic device field alone to offset the med device tax. That's more than a full 10% of the job growth rate required throughout the entire working sector to get the economy back on the right track on on its way out of the recession - from our industry alone! Not to mention that the ever-increasing price of fuel drives the cost of business higher, from the cost of raw material deliveries, to the cost of corporate utilities to the cost of you and me driving around our territories. This is one industry where the increased cost of goods cannot be passed along to customers, since we are dealing with payors who have all the control nowadays. So the only thing left is to cut headcount expenses in order to maintain the bottom line. Be sure to vote for real Change in 2012. Gas prices in Europe are nearly $10 a gallon - that's Change you and I cannot afford, and neither is a mentality that thinks Obamacare does not cost us all significantly.
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Excuse my ignorance but is it too
late? Are the wheels already in motion for this device tax or can it be turned around if we get somebody else in the white house?
 



This is just another excuse by the medical device companies to drop workers. As they state, it is only responsible for 'some' of the layoffs, read that as none of the layoffs, but great if we can blame the government.
 



Anonymous said:
This is just another excuse by the medical device companies to drop workers. As they state, it is only responsible for 'some' of the layoffs, read that as none of the layoffs, but great if we can blame the government.
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Think about what you are saying, Do you really think companies keep employees around until they have an excuse to let them go? Companies will have layoffs in a second if they have a business case to do so.

This tax comes at a bad time for orthopaedics. The economy downturn hurt everyone. Then, as the economy started to recover, compliance witch hunts kicked in to full gear and hampered research. Then pricing pressures started lowering reimbursement and squeezed margins even lower. And what happens in a low margin field? R&D gets crushed. Look at computers in 1980s vs 2000s. HP, IBM, DEC were all huge research centers. Then Dell came along with razor thin margins, and forced several companies to greatly reduce R&D spending. This is not a bad thing necessarily. But computer markets and medical devices are different.

R&D is hemorraging people. Pricing pressures have made margins so thin, companies aren't trying to out-innovate their competitors, they are trying to operate in the black. Compliance pressure, reimbursement pressure, and heavier taxes are hurting orthopaedics right now.

I'm not saying all of it is bad. Compliance regulation was needed. This also creates an economy where companies would rather buy innovation that's been proven, rather than invest in it themselves. If you are in R&D, and can accept not working a 9-5 schedule with medical insurance, you can make a fortune if you can innovate. But you won't be working for a Big-5 company to do it.
 



Anonymous said:
Think about what you are saying, Do you really think companies keep employees around until they have an excuse to let them go? Companies will have layoffs in a second if they have a business case to do so.

This tax comes at a bad time for orthopaedics. The economy downturn hurt everyone. Then, as the economy started to recover, compliance witch hunts kicked in to full gear and hampered research. Then pricing pressures started lowering reimbursement and squeezed margins even lower. And what happens in a low margin field? R&D gets crushed. Look at computers in 1980s vs 2000s. HP, IBM, DEC were all huge research centers. Then Dell came along with razor thin margins, and forced several companies to greatly reduce R&D spending. This is not a bad thing necessarily. But computer markets and medical devices are different.

R&D is hemorraging people. Pricing pressures have made margins so thin, companies aren't trying to out-innovate their competitors, they are trying to operate in the black. Compliance pressure, reimbursement pressure, and heavier taxes are hurting orthopaedics right now.

I'm not saying all of it is bad. Compliance regulation was needed. This also creates an economy where companies would rather buy innovation that's been proven, rather than invest in it themselves. If you are in R&D, and can accept not working a 9-5 schedule with medical insurance, you can make a fortune if you can innovate. But you won't be working for a Big-5 company to do it.
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You didn't even mention the 510k process being in jeopardy!
 



Didn't Stryker's CEO catch onto Obama's racket that he is running down in Washington and they were forced to lay off a couple thousand of Stryker's employees at the end of last yr? Just google "steve macmillan medical excise tax".....it doesn't matter if you work for Zimmer, JNJ, Stryker, etc, this president is trying to turn this country into a bunch of socialists that make us rely on the government for everything...good luck in November!!!!
 



Outsourcing has been the most consistent trend in the overall operation of medical businesses in the past 10 years.

All hc companies have been operating at super high margins with tons and tons of administrative fat. Now the lights are on because there's more margin to get, not because of Obamacare.

You guys are just a couple years behind the curve. You should thank Prez Obama helping lead you to a more efficient and current organization.
 



Anonymous said:
Outsourcing has been the most consistent trend in the overall operation of medical businesses in the past 10 years.

All hc companies have been operating at super high margins with tons and tons of administrative fat. Now the lights are on because there's more margin to get, not because of Obamacare.

You guys are just a couple years behind the curve. You should thank Prez Obama helping lead you to a more efficient and current organization.
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Overspending has been the most consistent trend in Obama's presidency in the past 3 years.

All government organization and social program have been operating at super high margins with tons and tons of administrative fat and waste. Now the lights are on because there are more margins to get from tax payer, because Obama wants it.

You have been blind for couple years and behind Obama's ass. Do you know the different from ass kissing and brown nosing? Answer: Depth perception. Get one!
 



Sure, blame the president for your private company's lack of innovation...All the C-suite guys know how to do is cut cost and not produce or innovate anymore...They then place false paper profits to their investors and make everyone believe the company is profitable..All they will do is keep the money offshore so stop complaining about 2%...taxes is part of the american dream...you can always headquarter in China if you are not happy!
 



Anonymous said:
Sure, blame the president for your private company's lack of innovation...All the C-suite guys know how to do is cut cost and not produce or innovate anymore...They then place false paper profits to their investors and make everyone believe the company is profitable..All they will do is keep the money offshore so stop complaining about 2%...taxes is part of the american dream...you can always headquarter in China if you are not happy!
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Ignorance is bliss! The 2.3% tax that you don't seem to think is a big deal is on total revenues and not on sales. What does this mean you ask? It means that if company x spends 100 million between R&D, manufacturing, and operational costs to generate sales of 120 million... Then the tax would be 2.76 million which would actually be 13.8% of profits. No other industry in this country is taxed on revenues and not on profits, that is why there are write-offs for individuals and corporations. Liberals and socialist will hide behind the 2.3% without ever wanting to discuss the real math because it is an inconvenient truth. Socialism is great until you run out of other peoples money to spend!!!
 






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