Last Night, Obama Referenced The Cleveland Clinic As An Example Of A Hospital Benefiting From ObamaCare’s Policies. OBAMA: “So at — at Cleveland Clinic, one of the best health care systems in the world, they actually provide great care cheaper than average. And the reason they do is because they do some smart things. They — they say, if a patient’s coming in, let’s get all the doctors together at once, do one test instead of having the patient run around with 10 tests. Let’s make sure that we’re providing preventive care so we’re catching the onset of something like diabetes. Let’s — let’s pay providers on the basis of performance as opposed to on the basis of how many procedures they’ve — they’ve engaged in. Now, so what this board does is basically identifies best practices and says, let’s use the purchasing power of Medicare and Medicaid to help to institutionalize all these good things that we do.” (President Barack Obama, Presidential Debate, Denver, CO, 10/3/12)
But The Cleveland Clinic And Other Ohio Health Care Professionals Are Bracing For The Damage From ObamaCare:
Cleveland Clinic Chief Executive Toby Cosgrove Said ObamaCare Could “Stifle Medical Innovation.” “Cleveland Clinic Chief Executive Toby Cosgrove told a full house at a City Club speech Wednesday he’s concerned that health-care reform could stifle medical innovation. ‘I think we have to worry very significantly about innovation,’ Cosgrove said in response to a question about the effects of health-care reform. He was referring specifically, he said, to the comparative-effectiveness provision in the law. Comparative effectiveness is shorthand for studying different treatments and paying for those that work.” (Diane Suchetka, “Cleveland Clinic CEO Toby Cosgrove Talks About Health-Care Reform And More At City Club,” The Cleveland Plain Dealer, 8/19/10)
The CEO Of University Hospitals In Cleveland, Ohio Warns ObamaCare “Creates A Larger Burden On The States.” ”UH’s Zenty said, ‘Even though it appears more coverage will be provided through Medicaid, that creates a larger burden on the states. And with the state of Ohio’s looming budget deficit, we need to be mindful of how that will be funded.’” (Evelyn Theiss, “Health Care Bill Should Save Cleveland Hospitals Money On Treating Poor, But Exact Amount Unclear,” The Cleveland Plain Dealer, 4/7/10)
And Executive Director Of Center For Community Solutions In Cleveland, Ohio Said Ohio Will Have To Raise Taxes “To Meet The Obligations Assumed In The Bill.” “John Begala, executive director of the nonprofit Center for Community Solutions, said preliminary analyses show that $20 billion (per year) in costs for health care reform will be divided among the 50 states, but added, ‘The budget estimates on this bill are so convoluted it’s simply impossible to know more.’ ‘We’re already facing a $3 [billion] to $4 billion shortfall going in the next biennium. It’s almost unimaginable that Ohio will be in a position three years from now to meet the obligations assumed in the bill without raising revenue for that purpose.’” (Evelyn Theiss, “Health Care Bill Should Save Cleveland Hospitals Money On Treating Poor, But Exact Amount Unclear,” The Cleveland Plain Dealer, 4/7/10)
The CEO Of Cleveland’s Invocare Said ObamaCare’s Medical Device Tax Is Like “Throwing A Hand Grenade” Into Health Care Industry. “The law includes a 2.3% excise tax on the sale of all medical devices except for consumer goods, such as contact lenses and hearing aids…Among established medical device companies, Invacare Corp. of Elyria, the world’s largest wheelchair maker, has been a vocal opponent of the tax. Invacare CEO A. Malachi Mixon III in a January interview with Crain’s went so far as to say the tax was the equivalent of ‘throwing a hand grenade in the middle of the health care economy.’” (Chuck Soder, “Tax On Medical Device Manufactuers Could Be Taxing,” Crain’s Cleveland Business, 3/29/10)
“The Leader Of One Ohio-Based Medical-Device Manufacturer Said The Tax Puts Companies That Do Most Of Their Business In The United States At A Disadvantage Compared To Competitors That Are Based In Europe Or Asia And Do Business There.” “The leader of one Ohio-based medical-device manufacturer said the tax puts companies that do most of their business in the United States at a disadvantage compared to competitors that are based in Europe or Asia and do business there. Those competitors wouldn’t feel the tax burden as much if they sold fewer products in the United States, said Walter Rosebrough, president and CEO of Mentor-based STERIS, which develops, manufactures and markets products aimed at preventing infection and contamination.” (Ben Sutherly, “Medical-Device Makers Fight Tax,” The Columbus Dispatch, 5/15/12)
The Tax Would Hit Dublin-based Cardinal Health, Which Employs 4,400 Ohioans. “The tax would affect Dublin-based Cardinal Health’s $1 billion medical-kit business, said Michael Lynch, executive vice president. Cardinal’s earnings as a percentage of sales are in the low single digits, so the excise tax could cause the company to reconsider competing in certain business segments subject to the tax, he said. Cardinal Health employs about 4,400 people in Ohio.” (Ben Sutherly, “Medical-Device Makers Fight Tax,” The Columbus Dispatch, 5/15/12)
In Lorain County Ohio, The Threat Of Obama’s Medical Device Tax Has Caused One Of Their Largest Businesses To Stop Hiring. “[I]n the short run, some of his policies could cost existing jobs, especially health-care reform, if it is enacted. One of the few large businesses that has prospered in Lorain County in recent years has been Invacare, a maker of home medical devices, such as walkers and wheelchairs… The company has 1,300 employees in Lorain County but has stopped hiring in anticipation of a tax on medical devices that was proposed to help pay for the president’s health-care reform plan.” (Michael A. Fletcher, “Assessing Obama’s Promises Of Jobs In A Hub Of Manufacturing,” The Washington Post, 1/22/09)
Medical Device Makers Employ 20,000 In Ohio. “In Ohio, about 20,000 workers are employed by medical-device and equipment manufacturers. A few large companies are affected, including Cardinal Health in Dublin and Invacare in Elyria. But industry-wide, 80 percent of these businesses have fewer than 50 employees. Since the tax is on all revenue, not profits, small companies are particularly worried that they’ll be put out of business by it.” (Editorial, “The True Cost,” The Columbus Dispatch, 3/26/12)
Medical Device Manufacturers Say The Medical Devices Tax Will Cost Manufacturers $20 Billion. “Medical-device manufacturers and their advocates want to eliminate a 2.3 percent excise tax included in the federal health-care overhaul. Industry officials say the tax, which takes effect in January, would cost manufacturers about $20 billion during the next decade. The medical-device industry recorded about $136 billion in revenue in 2008.” (Ben Sutherly, “Medical-Device Makers Fight Tax,” The Columbus Dispatch, 5/15/12)