eNews April 26, 2022

The latest news affecting you and your customers… from the Independent Medical Specialty Dealers Association

Tax law detrimental to innovation

This year marks the first time in nearly 70 years companies won’t be able to claim all expenses for research and development in the same tax year that the money was spent, reports the Minneapolis Star Tribune. Many medical technology and life sciences companies object to the change, arguing it could hurt the development of life-saving or life-changing products. Under previous tax law, companies could expense all R&D costs spent that year on the same year’s taxes. The new law requires those costs be amortized over five years. That translates into smaller numbers expensed each year. This law change was a provision, just now going into effect, from the 2017 tax reform legislation.

 

Too much information

Draft guidance from the US Food and Drug Administration on reporting medical device and diagnostic shortages for public health emergencies is too broad and could be too resource-intensive for manufacturers as well as regulators, according to medtech industry groups, reports the Regulatory Affairs Professionals Society. In January, the FDA published a draft guidance that outlines when and how medtech manufacturers should alert the agency of potential product shortages that occur before and during a public health emergency. “We believe the scope of requested information is too broad and in some cases requests information that is duplicative of information the agency already maintains,” AdvaMed wrote.

 

Five conditions dominate healthcare spending

Five conditions make up 50% of healthcare spending by employers on behalf of their employees, according to a study from the Health Action Council and UnitedHealthcare. They are cancer (15% of healthcare spending), musculoskeletal conditions (13%), cardiovascular conditions (9%), gastrointestinal conditions (7%) and neurological conditions (6%).

 

Notify your customers about RT recognition award

Let your customers know that nominations are still being accepted for the National Respiratory Patient Advocacy Award, a collaboration of the American Association for Respiratory Care and the FACES Foundation. Nominations must come from facilities where registered RTs provide direct care to patients and should address the person’s commitment to patient- and family-centered care, quality and safety, advocacy for respiratory therapy as a profession and more. The award recipient receives complimentary travel with hotel accommodations for two nights and complimentary registration to attend the AARC Congress. Award finalists will receive a one-year paid extension to their AARC membership. Deadline for nominations is July 31. Click here for more details.

 

Physicians as employees

Nearly three quarters of U.S. physicians (74%) are now employed by hospitals, health systems or corporate entities, according to data from Avalere, in a study sponsored by the Physicians Advocacy Institute. This is an increase from 69% just last year. Health systems and corporate entities have been steadily acquiring physician practices for years, but Avalere researchers found the trend has accelerated drastically since the onset of COVID-19. More than 100,000 physicians became employees since January 2019. Of those, 83,000 (76%) became employees since the pandemic began.

 

Reducing intubation risk

Awake prone positioning reduced intubation risk and hospital length of stay for patients with COVID-19 requiring oxygen through high-flow nasal cannula, according to results of the PROCARF trial, reports Healio. PROCARF was a randomized controlled superiority trial conducted in western Mexico that enrolled 430 adults with COVID-19 who required oxygen via high-flow nasal cannula. “Our results support healthcare-staff-driven awake prone positioning use as standard care applied early and as long as possible, with the goal of minimally 8 hours per day,” Miguel Ibarra-Estrada, MD, critical care physician at the University of Guadalajara in Mexico, said during a presentation at the Society of Critical Care Medicine Congress.

 

Innovation in the Appalachians

A new venture between Ballad Health and the East Tennessee State University Research Corporation is intended to bolster regional efforts to enhance economic growth in the Appalachian Highlands, while also creating a national portal for rural health innovation, reports the health system. The new Appalachian Highlands Rural Innovation and Entrepreneurship Alliance will coordinate multiple local and national areas of research and idea development, particularly impacting the delivery of healthcare, through surveilling efforts, accelerating early-stage development, translating research into business opportunities and identifying scalable opportunities for investment, ultimately reshaping the overall economy, health and well-being of the region.