by Carolyn DeVasto, VP, Medical Devices, & Steven Kirstein, Director of Marketing, OnProcess Technology, Inc.
In a recent article about the Medical Device Tax published in the Boston Business Journal, Tom Sommer, president of MassMEDIC, remarks “Some (device companies) will pass it on to hospitals with a line at the bottom of the bill highlighting how much of the cost will go toward the excise tax. Others will absorb the loss through cuts elsewhere. There are companies that are reducing the costs in other areas, most notably in research and development,” he added. “Also, they are looking at off-shoring manufacturing and looking at reducing the workforce… They don’t have any options.”
But there are ways to help offset the lost revenue.
With increasing cost pressure from eroding margins along with the impacts of the device tax, medical device manufacturers can benefit greatly with OnProcess SSCO (Service Supply Chain Optimization) offering. With the ability to drive 39% cost reduction in post service order management, 11% cost savings in labor reduction alongside a 12% decrease in inventory CapEx, we can and do offer our clients in the Medical Device industry a way to cut costs significantly, helping to defray the need for research cuts and/or workforce reductions.
Growth and profitability are paramount for every organization – and we help our clients achieve that by successfully delivering operation excellence in the service supply chain. To learn more about OnProcess SSCO, please visit this page – where you’ll be able to download our White Paper and view a brief audio/visual explanation. You are also welcome to contact Carolyn DeVasto at (508) 520-2711 extension 2103, or by email.