By Brendon Nafziger and Heather Mayer, DOTmed News reporters

Medical device makers, hospitals and their advocates spent tens of millions of dollars in the second quarter lobbying Congress on issues ranging from the medical device tax to Medicare.

While down from last year's all-time high in the run-up to health reform, spending is still strong as device makers prepare to fight excise taxes and new rules aimed at toughening the device clearance process.
Total health care industry spending on lobbying fell 7 percent, from $135 million this time last year to $126 million this past quarter.

Device lobby strikes back

In order to protect medical device companies, chief advocacy group Advanced Medical Technology Association (AdvaMed), spent $380,000 on lobbying efforts in the second quarter. To date, the organization has spent $764,219, and in 2009 it spent a total of $1.6 million for lobbying, according to reports from the Center for Responsive Politics.

One of the top priorities of the medical device group is thwarting the Democratic effort to overturn a decision that currently protects medical device companies from patient lawsuits by giving federal regulators the last word in deeming a device safe. AdvaMed, according to reports, argues that overriding this decision would allow state courts to second-guess medical experts.

Also high on its list, AdvaMed lobbied the U.S. Food and Drug Administration's 510(K) clearance process, which currently is under attack for being too lenient. AdvaMed has warned that tighter regulations could make it harder to get new devices on the market in a cost-efficient manner and also hinder innovation.

The group's $379,194 lobby expenses are down from last year's second quarter $380,324 spending and this year's first quarter $385,000.

A group similar to AdvaMed, the Medical Device Manufacturers Association (MDMA), spent $180,000 in 2010 so far in lobbying. And Boston Scientific Corp., which is a member of AdvaMed, spent $480,000 in the second quarter to lobby the federal government on health care reform, in addition to other health care issues, including the medical device tax, which will require medical device manufacturers to pay $2 to $3 billion in fees per year. The company also lobbied a provision that requires drug and medical device makers to disclose any gifts given to physicians, an effort to control influence over medicine. To date this year, the company has spent $960,000 in lobbying.

Hospital spending still high

According to a recent federal filing, more than $4.2 million has been spent by the American Hospital Association (AHA) in the second quarter, for lobbying the federal government on Medicare fraud and health care reform.

After Congress passed health care reform in March, many other health care companies and groups lowered their spending on lobbying; however, the non-profit trade association boosted it by 13 percent, compared to $3.7 million spent in the first quarter and 20 percent compared to the $3.5 million spent in the second quarter of last year.

One reason the AHA likely hasn't slacked in spending is upcoming changes in Medicare payments. Hospitals face a nearly 3 percent Medicare reimbursement cut from the final inpatient rules put out by the Centers for Medicare and Medicaid Services. CMS said the cuts are to recoup money due to overpayments from coding changes, but the AHA estimates the coding offset will slash nearly $4 billion from inpatient Medicare payments, and result in nearly a half percent total payment decrease in fiscal year 2011.

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