2/17/13: ObamaCare effects have started in the medical industry. In the course of developing a surgical instrument I found the following evidence. The company pricing is logically by quantity, but indicates the price does not include the regulatory fee which is bundled with the collet design charge.
The collet is minor expense, but the major portion is the regulatory fee. The example is 1-5 units at $1,750 each is an additional $9500. So 1 (one) unit is now $11,250. The instrument is less than 20% of the regulatory fee. However the expense can be reduced per unit with larger purchases.
I also recently learned that a tool shop that makes for aerospace must pay $4000 regulatory fee to make simple chisels or awls for surgery. The company that sells them pays another $4000 in “regulatory fee” to the federal government. The chisels sell for under $50 retail that must cover cost of goods, product liability insurance, advertising, travel, meetings, cost of the sale, and maybe even a profit that in no way could match what the government takes out of biotech.
Why innovate in medicine and surgery?
