Challenge: One of the nation’s largest producers of medical devices called on the Podesta Group at the height of the health care reform debate, when they were threatened with a $66 billion tax on the industry – the impact of which would be devastating in terms of future innovation, workforce retention and market availability of certain product lines.
Strategy: Develop an aggressive, three-pronged public policy strategy that would refocus an existing industry effort that lacked coordination, direction and realistic objectives. This included a tailored education campaign for a core group of bi-partisan members of Congress explaining the harmful effects of the possible tax in their home districts and forged a partnership between our client and another similar situated company possessing a divergent business structure and large geographical footprint. And lastly, offer a compromise of an acceptable level of cost reductions that would give the medical device industry market certainty, preserve innovation, ensure product accessibility and provide lawmakers the revenue needed for health care reform.
Result: The proposed tax was reduced by 69%, averting what could have been an industry crisis.