The medical imaging technology industry supports an estimated 11,746 jobs and produces about $2.8 billion in total economic activity in Pennsylvania but the medical device tax is still hampering the development of new technologies.

These were the findings of a new economic impact analysis commissioned by the Medical Imaging & Technology Alliance (MITA).

"This report demonstrates that Pennsylvania's economy relies heavily on a strong medical imaging technology sector,” Patrick Hope, executive director of MITA, told DOTmed News.

In addition, the industry supported 5,100 direct and indirect jobs in other parts of the U.S. The medical imaging jobs pay over $100,000 on average in wages and benefits and the jobs supplying goods and services have average wages of $74,000.

The analysis compiled data from Dun & Bradstreet Inc., industry sources, and the Pennsylvania state government. It then used an economic modeling framework called IMPLAN, which is based on the national income accounts generated by the U.S. Department of Commerce.

The manufacturers in Pennsylvania are pioneering the development of a plethora of medical imaging devices including diagnostic tools for detecting, diagnosing and monitoring cancer and other diseases, according to the analysis. Those new tools have proven to improve health outcomes and reduce long-term health costs.

However, the medical device tax, which is a 2.3 percent tax on FDA-listed medical devices, is a continuous threat to this industry and is diverting many of the resources that could be put toward the development of additional new technologies. Congressmen Chaka Fattah and Brendan Boyle of Pennsylvania support repealing the device tax in the House and their districts sustain almost 2,000 jobs connected to the medical imaging industry.

“Unfortunately, policies such as the medical device tax threaten the overall economic well-being of states like Pennsylvania that generate tens of thousands of high-paying jobs and billions in economic activity throughout the sector,” said Hope.

Siemens Healthcare, which is based in Malvern, Pennsylvania, stated on their website that the tax creates a disincentive to pursue new medical innovations that are the keys to longer, healthier and improved lives. The company has been very active in repealing the tax and their employees have sent letters to their elected representatives explaining the negative effect it has on the company.

Business Affairs Homepage