Orthopedic, Spine Device Companies Brace for 2.3% Tax Impact

Spinal Tech

Medical device companies prepare for the 2.3 percent tax on device sales set to go into effect Jan. 1, according to St. Louis Biz Talk. Spectrum Medical, an orthopedic device distributor in St. Charles, Mo., is expecting to lose $300,000 to $400,000 in the next year from the tax. President Jeff Toedtmann and his group earn 20 percent commission on the sale of each orthopedic implant, but next year that commission will drop by at least 2 percent.

Chesterfield-based SpineSource CEO Tom Mitchell blames the tax for forcing him to forgo importing a new spinal device implant from Europe that could have added $5 million in 2014 revenue.

Both SpineSource and Spectrum Medical are waiting to cut jobs until more effects from the tax are known.

More Articles on Devices:
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