AdvaMed: Stimulus Package “Will Help Boost the Nation’s Testing Infrastructure,” Aid Small Medtech Businesses
WASHINGTON, D.C. – The Advanced Medical Technology Association (AdvaMed) today thanked Congress and the President for working together to pass the latest COVID-19 stimulus package, which will provide additional relief for smaller medical technology companies and a significant boost to the nation’s testing capabilities.
“Building on the impressive legislative work they’ve already done in the fight against this pandemic, Congress and the administration have again come together to ensure America’s health care providers and small businesses have the support they need,” said Scott Whitaker, AdvaMed president and CEO. “This latest stimulus package will enable many more smaller medtech companies to retain their employees and continue to develop life-changing innovations, and it will help boost the nation’s testing infrastructure which is absolutely vital to paving the road to U.S. recovery. While more needs to be done to ensure that employees of private equity- and venture capital-backed small businesses have access to the Paycheck Protection Program, and more needs to be done to lay the groundwork for addressing the backlog of deferred procedures and services, this is an important step in addressing immediate needs in response to the crisis.”
The latest legislative stimulus package signed by President Trump includes many provisions for which AdvaMed advocated. Smaller medtech companies, which comprise more than 80 percent of the industry, will benefit from an additional $310 billion for the Paycheck Protection Program – $250 billion of which will be accessible by small medtech companies, an additional $10 billion in Emergency Injury Disaster Loans (EIDL), and a $50 billion boost for the Disaster Loans Program Account.
On the diagnostic testing front, the legislation includes $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests. That includes $11 billion dedicated to states and other local authorities for pandemic testing, to scale-up laboratory capacity, develop trace contacts, and support employer testing. Additional funds are also directed to CDC, NIH, FDA, and other agencies to expedite development and implementation of COVID-19 testing.
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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.