Schafer: St. Jude's job cuts are about device tax

  • Article by: LEE SCHAFER , Star Tribune
  • Updated: September 11, 2012 - 8:58 PM
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  • Comments

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mandmpSep. 11, 12 9:26 PM

But Obama-Care was to be free, or so we were told.

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clnorthSep. 11, 12 9:48 PM

When he said he was focused like a laser on jobs, he never said he was focused on creating them.

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werecomingSep. 11, 1210:15 PM

I also speak with Dr's and hospitals are already cutting back staff due to the costs associated with this free health care.... It's not going to be good....More jobs lost will be coming everyone's way. Why would you open a business with this model? Forced health care, more taxes, rules, regulations... I wonder why businesses go overseas? I know I'm not putting anything into a business under this adminstration...risk/reward...America's loss~

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oldguy99Sep. 12, 12 6:40 AM

Mr. Schafer, suggest that you do a complete analysis before you cite the med device tax as the root cause for SJM's layoffs. These layoffs were concentrated in the CRM division. The CRM division has significant product quality isues i.e., recalls. That has caused docs to shy away these products. Sales tanked because of product quality issues and the company responed by firing 300 people. While not as grandstanding or as opportunistic as blaming it on Obama, that's what happened.

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jcinmnSep. 12, 12 7:05 AM

I could point you to an article in "Discover" magazine that points directly to the reason for these layoffs Mr. Schafer. It is about a woman who received a defibrillator and wound up passing out every time she stood up or even sat up. Her husband had to carry her into the emergency room just to keep her conscious enough to explain the problem to the doctor. It too a whole week of tests to determine that the cause of the problem was the defibrillator. How much do you think those tests cost? Who do you think paid for those costs? That's the real reason for the cut back in help. Defective product leads to lower demand leads to lay offs leads to blaming the government for an inconsequential tax that is already covered in the price of a product doctors don't want to use because it causes more trouble than it fixes.

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jcinmnSep. 12, 12 7:12 AM

mandmp "But Obama-Care was to be free, or so we were told" Maybe in your dreams. ACA was never meant to be free (you're thinking of the single payer system proposed by the Clinton administration but rejected by Congress - that was 20 years ago!). It was designed to control the double digit hikes in health insurance costs that have existed for the past 60 years. In spite of all of the sniping by the reddies it is actually working. Billions in refunds of premiums to the payers and cost increases less than 4% this year.

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jcinmnSep. 12, 12 7:42 AM

clnorth "When he said he was focused like a laser on jobs, he never said he was focused on creating them." And yet he's HELPED the private sector create 4.75 million jobs in the last 2 years. Don't fret because the Repugnicants are achieving their goal (shrinking the government) by shedding enough jobs to keep the unemployment rate above 8% so they can blame Obama for the lack of jobs in the US

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chazzboSep. 12, 12 8:29 AM

"The medical device industry, primarily through a trade association, has been agitating for repeal of the device tax. At its core, the message is pretty straightforward: The device tax is a job killer." See the comments above about product issues and in the article itself about slowing sales, which also coincidentally are close to the amount of the cuts. And this article, under the guise of analysis, carries the industry's political water.

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dirtydogsSep. 12, 12 8:51 AM

WRONG...It is about GREED and capacity. Do you really think they would be rid of employees they need just because of a modest tax. This has to be one of the most clueless and uniformed articles I have read in a long time. Bottom Line, St. Jude had over capacity and decided to lay off staff. My guess is St. Jude, and most healthcare companies, will make out much more than they are hurt by the new healthcare law. The dollars have to go somewhere....and they go to companies that manufacture healthcare products and doctors that perform services. This article is a complete joke.

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ranger1873Sep. 12, 1210:30 AM

Perhaps the 300 former St. Jude employees can thank their senator, Amy Klobuchar, who supported the device tax that cost them their jobs.

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