DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

More Industry Headlines

Cleveland Clinic, American Cancer Society dump Trump's Mar-A-Lago Mounting blowback from health care industry in wake of Virginia aftermath

INSIGHTEC's Exablate Neuro hits 1,000 patient mark System installed in 30 medical facilities worldwide

Medica to acquire Mayo Clinic Health Solutions May improve access for patients with complex conditions

Enterprise imaging will make up 27 percent of imaging IT market by 2021 PACS vendors ramp up enterprise solutions to compete against multi-vendor IT models

Robotic-assisted transhiatal esophagectomy is safe and effective for certain patients But it's a complex procedure to perform

Machine learning algorithm may predict early-stage Alzheimer's disease Already used for cancer

Stryker’s Serrato Pedicle Screw gets FDA nod Part of the Xia 3 Spinal System

Siemens Healthineers collaborates with Houston Methodist Hospital Will provide advanced angio, MR, CT, molecular imaging and ultrasound technology

Nationwide hosts IAMERS forum on QMS in advance of FDA report Stakeholders discuss ISO quality management systems

Insight Imaging acquires LG Medical Technologies Adds 27 mobile diagnostic imaging units to its fleet

Stryker to lay off 5% of workforce

by Brendon Nafziger , DOTmed News Associate Editor
Stryker said Thursday it was laying off 5 percent of its global workforce, in a move analysts say could help soften the earnings hit from a coming medical device manufacturers tax.

The Kalamazoo, Mich.-based maker of surgical and orthopedic equipment said the layoffs were part of a restructuring move that would help shave $100 million off yearly pre-tax operating costs, starting in 2013. Stryker expects most of the layoffs and restructuring activities to be wrapped up by the end of next year. Affected employees would receive severance packages, counseling and job placement services, Stryker said.

Story Continues Below Advertisement

Streamline Your Radiology Workflow with RamSoft's PowerServer RIS/PACS

The PowerServer RIS/PACS is a single database application, essential to reducing redundant work, limiting manual data entry, and increasing consistency throughout healthcare practices. Click to learn how it will help you improve patient care and more.



Reuters estimates the company will cut about 1,000 workers.

The company expects $150 million to $175 million in restructuring charges, of which it will record $85 million to $95 million in the fourth quarter.

The announcement comes as medical device makers brace themselves for a 2.3 percent excise tax, called for on the industry by the Affordable Care Act. The tax is set to take effect in 2013.

"Assuming (Stryker's) restructuring initiative can achieve management's anticipated ~$100M annual savings target starting in 2013, this could -- all else held equal -- at least partially neutralize the Med Devices Tax hit to (earnings per share)," Rick Wise, an analyst with the health care investment bank Leerink Swann, said in a note to investors Friday. Earlier, he said they estimated the company would take a nearly 23 cent EPS hit from the tax.

"These initiatives reinforce our view that (Stryker) remains one of the better positioned companies in our universe to deliver above-average EPS growth over time," Wise said.

Earlier this fall, the Advanced Medical Technology Association (AdvaMed), a trade lobby, released a study warning that the medical device tax could lead to the loss of 43,000 U.S. jobs.



Related:


(34)
(1)

Brian Tunell

Creating Jobs

November 17, 2011 11:26

This is called "Creating Jobs the Obama way." It's proof that you can not tax your way to prosperity. It only continues to grow an already bloated and unsustainable government.

Log inor Register

to rate and post a comment

You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2017 DOTmed.com, Inc.
ALL RIGHTS RESERVED