The Wall Street Journal found several medical device companies, including Applied Medical Technology, Hans Rudolph and Cardica, have either added surcharges to their bills with hospitals or informed hospitals they would be charging more to cover the tax. Congress passed the medical device excise tax last year, and it went into effect Jan. 1.
Larger medical device companies, such as General Electric and Medtronic, have not explicitly added surcharges. Most hospital executives and contract managers have said the trend of adding a “medical device adjustment” surcharge has mostly appeared with “commodity items sold by mom-and-pop outfitters,” according to the report.
The American Hospital Association said it is lobbying the Internal Revenue Service to prevent medical device companies from passing on the tax to hospitals.
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