Ep. 57: Tariffs and the medical device industry with Rohit Harve of PA Consulting

Rohit Harve, a technical operations partner and health care expert with PA Consulting, joins the show to talk tariffs and their impact on the medical device industry.

Don't miss our previous episodes on success in private practice, selling a practice, Medicare cuts, and practice employee safety.

Also, be sure to check out Medical Economics Pulse, a quick-hitting news podcast that keeps busy physicians in the know.

Music Credits:
In Your Embrace by GrayMic/Jamendo - stock.adobe.com
Relaxing Lounge by Classy Call me Man - stock.adobe.com
COCKTAIL by Mythical Audio - stock.adobe.com

Editor's note: Episode timestamps and transcript produced using AI tools.

Impact on Consumers (00:00:00)
Prices will be passed on to consumers, affecting doctors, patients, and health care providers.

Introduction to the Topic (00:00:14)
Austin Littrell introduces the episode and the guest, Rohit Harve, focusing on tariffs in the medical device industry.

Current Landscape of Tariffs (00:01:01)
Rohit discusses the volatile situation regarding tariffs and their effects on the medical device industry.

Profitability and Market Dynamics (00:01:20)
Tariffs impact profitability, growth, and market dynamics, especially in discretionary care segments.

Cost of Goods and Components (00:02:29)
Increased costs for components like semiconductors and materials will affect margins and pricing power.

Impact on Healthcare Costs (00:04:17)
Increased costs will ultimately affect health care expenses for consumers, doctors, and patients.

Supply Chain Issues (00:06:14)
Tariffs will complicate supply chains, pushing manufacturers to seek local suppliers amid regulatory challenges.

Challenges of Reshoring (00:09:07)
Moving complex manufacturing back to the U.S. is challenging due to time, cost, and skill shortages.

Competitiveness in Global Market (00:11:17)
Tariffs will hinder U.S. medical device companies' competitiveness and innovation in the global market.

Industry Response and Lobbying (00:12:22)
Active lobbying efforts are ongoing to address tariffs and their implications for the health care sector.

Future of Tariffs (00:14:12)
The likelihood of a deal on tariffs is uncertain, with potential adjustments in magnitude anticipated.

Uncertainty's Impact (00:15:18)
Uncertainty surrounding tariffs affects the medical device industry, though it may handle fluctuations better than others.

Insights on Efficiency (00:16:41)
Startups should focus on product efficiency and competitiveness in the global market amidst changing conditions.

Conclusion of Discussion (00:17:35)
Todd thanks Rohit for the insightful conversation on tariffs and their economic implications for health care.