Starting in 2014, the Affordable Care Act will require most Americans to carry health insurance, and the penalty for failure to do is fine. So the reform of health care seems to bode well for medical start-ups, right? Not necessarily.
A recent article in the Wall Street Journal explored this question and made some interesting points.
Although the requirement for health insurance should prove advantageous for companies invested in the medical field, a different arrangement can be problematic. Next year, an excise tax of 2.3 percent on sales of medical devices come into force. People in the medical device industry are concerned that this tax will be more difficult for medical start-ups to raise capital to start and grow. Start-ups are already facing significant challenges; it usually takes a medical start-up of 10 years and $ 100 million to develop and launch a medical device.
The problem is that the tax on medical device could have a negative impact on financial projections, decreasing the attractiveness of companies for investors. As a result, start-ups may lose access to funding, which is so essential to cover expenses such as manufacturing, installation, sales and marketing. Another consequence of the tax is the tough decisions that some companies may be forced to make because of it -. For example, rent a slower or stop hiring efforts for now
Not only is the device companies that stand to suffer if the reform of health care remains intact during the next presidential term. Some investors have expressed concerns that the insured population is growing and use of medical products increases with it, insurers become rigid on prices. price pressures could lead the public-market investors away from health care, which makes it more difficult for startups to go public.
All these issues have the potential to damage medical startups, yes. However, it is important to remember that most people who are bold enough to risk starting their own business are already equipped with the resilience and creativity. As these two features are leveraged, start-ups will find a way to survive and thrive.
0 Komentar