I am not sure if Cook Medical is making a political statement regarding the new device tax, but it certainly is worth discussing. They did a press release indicating that they were going to cancel 5 manufacturing facilities over the next five years in the Mid-West because of the 2.3 percent device tax starting in January 2013. There is no question the money to pay these taxes has got to come from somewhere. Out of the expansion budget is obviously Cook’s choice. However, since they are a private company they didn’t need to do a press release. I believe the reality is that part of the money will come from passing on some of that expense to the customer and some of it will come from cutting expenses elsewhere.

I don’t think anyone questions that everyone should have medical coverage. The one thing I believe it provides most effectively is health insurance for individuals with prior conditions. However, I think it does a poor job of protecting jobs in America, because now the cost of doing business just went up across the board. If it is more expensive here, then companies will look to once again move jobs off shore. Less jobs in American means the economy continues to struggle, and on and on it goes.

All of that being said, healthcare companies are blessed to be in the business they are, with or without a new tax.

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