2017 Advocacy Report Advancing Healthcare Distribution

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1 2017 Advocacy Report Advancing Healthcare Distribution DISTRIBUTION STREAMLINING HEALTHCARE SM

2 HIDA is the voice of the medical products industry on Capitol Hill, advocating for laws and regulations that create a positive business environment for HIDA members and their customers. HIDA s Government Affairs team really knows how to move the meter on important industry issues, such as the FDA s Unique Device Identification rule. By collaborating with fellow distributors on Capitol Hill during the HIDA Washington Summit and federal agency meetings, we raised awareness on UDI s various impacts to our industry while extending the Class II medical device deadline. We value these opportunities to score wins for our company and distribution as a whole. Chris Fagnani, Lynn Medical HIDA succeeds in bringing national attention to our top government affairs and distribution priorities by putting members front-and-center at key events throughout the year. We maximize our opportunities to participate with HIDA at Capitol Hill briefings, industry conferences, and federal agency meetings, and I particularly appreciated presenting our pandemic preparedness efforts along with HIDA at the AHRMM16 meeting. Marshall Simpson, Owens & Minor HIDA s leadership to drive initiatives that solve our industry s biggest issues, like improving pricing accuracy in healthcare contracting, helps us address specific supplier needs while enhancing business practices for our trading partners. We recognize the importance of the Contract Administration Conference and other collaborative events HIDA hosts, bringing the right people to the table to enact meaningful and positive change. Nancy Montemarano, BD

3 Big Healthcare Changes Ahead: The 2016 Election Impact Big Picture President Donald Trump has identified healthcare as one of his administration s top priorities and has promised to fully repeal and replace the Affordable Care Act (ACA) with an alternate plan. With a Republican majority in both chambers of Congress, it is possible there will be substantive action on the president s legislative priorities. Sustaining Momentum HIDA remains fully engaged with federal and legislative leaders to advance member interests. HIDA s Political Action Committee (HIDA PAC) also supports lawmakers who listen to and advocate for healthcare supply chain stakeholders, raising more than $174,000 for these industry champions and achieving a 95% winning percentage in the 2016 November elections. Candidate Win? Rep. Barbara Comstock (R-VA) Rep. Anna Eshoo (D-CA) Rep. Susan Brooks (R-IN) Rep. Diana DeGette (D-CO) Rep. Bob Latta (R-OH) Sen. Rob Portman (R-OH) Rep. Pat Tiberi (R-OH) Sen. Richard Burr (R-NC) Rep. Renee Ellmers (R-NC) Rep. George Holding (R-NC) Rep. Marsha Blackburn (R-TN) Rep. Kevin Yoder (R-KS) Rep. Ron Kind (D-WI) Rep. Richard Hudson (R-NC) Sen. Orin Hatch (R-UT) Rep. Tom Price (R-GA) Rep. Tammy Duckworth (D-IL) Rep. Vern Buchanan (R-FL) Sen. Michael Bennett (D-CO) Majority Whip John Cornyn (R-TX) Brian Fagnani, Lynn Medical; Jim Oliver, American Medical Depot; Janis Dezso, Bovie Medical Corporation; Curt Wilens, Cardinal Health; and Josh Babb, HIDA Members prepare to hit the Hill with HIDA President & CEO Matthew J. Rowan. What To Watch Medical Device Tax: After achieving a two-year delay in 2015, many stakeholders are already laying the groundwork to include a permanent repeal in an expected 2017 tax reform bill. Competitive Bidding: The 21st Century Cures Act included language that retroactively rolls back pay cuts to rural DME suppliers that were implemented in July The nationwide expansion of competitive bidding pricing was part of the ACA, which faces an uncertain future under the Trump administration.» Rep. Tom Price (R-GA), who has been nominated to head HHS, has led efforts against expanding competitive bidding. Advancing Healthcare Distribution 2017 Advocacy Report 1

4 Following HIDA Engagement, FDA Extends UDI Class II Deadline For Certain Devices HIDA achieved a key victory this year on Unique Device Identifier (UDI) compliance. After outreach and advocacy by HIDA and its members, the Food and Drug Administration (FDA) issued a letter extending the UDI compliance date to September 24, 2018, for certain Class II medical devices. This extension allows supply chain partners additional time to work through the issue of repackaging singleuse devices for low unit of measure (LUM) and just in time (JIT) programs. Distributors, manufacturers, and the FDA can use this additional time to develop best practices for these programs. Sen. Richard Burr (R-NC) addresses HIDA members during the Washington Summit. FDA Willing To Work With Industry Crucially, this extension came from extensive HIDA engagement with the FDA. The agency indicated during its conversations with HIDA that it will continue to engage industry partners on UDI compliance, looking for further collaboration opportunities. The UDI extension allows distributors and manufacturers extra time to resolve repackaging issues. Members meet with Rep. Barbara Comstock (R-VA) during HIDA s Washington Summit, sharing specific impacts the UDI labeling rules have on their business. HIDA members conclude a productive Hill meeting with Sen. Dan Coats (R-IN) Advocacy Report Advancing Healthcare Distribution

5 HIDA Drives Pandemic Preparedness Collaboration HIDA partners with legislative, regulatory, and industry leaders to advance national pandemic preparedness efforts and promote cooperation between the public and private sector. May 25 HIDA Facilitates Pandemic Preparedness Capitol Hill Briefing In addition to HIDA s advocacy campaign during the Washington Summit, distributors participate in Capitol Hill briefings and other high-level meetings with leading industry and public health experts throughout the year. Michael Baffi, Thermo Fisher; Danelle Miller, Roche; and Ryan Schmidt, Alere, brief lawmakers on important supply chain considerations when preparing for pandemics. July 27 HIDA Engages CDC On Industry Opportunities HHS Deputy Assistant Secretary Ed Gabriel discusses federal emergency preparedness capabilities with HIDA members. HIDA President & CEO Matthew J. Rowan (second from left) meets with CDC leaders to discuss emergency preparedness. August 1 HIDA Hosts Pandemic Preparedness Seminar At AHRMM16 HIDA Vice President of Government Affairs Linda Rouse O Neill, with Owens & Minor Chief Commercial Officer Marshall Simpson, discusses strategies for building elasticity into the healthcare supply chain. HIDA members educate lawmakers on pandemic preparedness issues during Capitol Hill meetings. Advancing Healthcare Distribution 2017 Advocacy Report 3

6 HIDA Washington Summit: Advocacy In Action During this year s Washington Summit, more than 60 supply chain leaders participated in over 100 meetings with lawmakers and staff from all across the U.S. Key Issues Discussed This Year Include DME Competitive Bidding. HIDA members encouraged lawmakers to support the Patient Access to Durable Medical Equipment Act (PADME) of 2016 which would delay certain cuts to durable medical equipment (DME) reimbursement rates under Medicare s competitive bidding program. Curt Wilens, Cardinal Health, concludes a meeting with Sen. Dan Coats (R-IN). Prescription Medical Device Licensure Legislation. HIDA members called on legislators to implement a uniform national standard for licensing wholesale distributors of prescription medical devices. Medical Device Tax. Participants in this year s Washington Summit called for a permanent repeal of the 2.3% excise tax on medical devices included in the Affordable Care Act. Pandemic Preparedness. HIDA members met with legislative and regulatory leaders to discuss challenges to the healthcare supply chain and opportunities for collaboration between industry and government. In The Senate, HIDA Met With 45 Offices In Total Senators from 15 Committees 9 United States Senators 24 Members from Finance 22 Members from HELP Majority & Minority Staff from HELP and Finance Committees In The House, HIDA Met With 42 Offices In Total Representatives from 18 Committees 11 Members from Ways & Means 9 Members from Energy & Commerce Majority & Minority Staff from Energy & Commerce and Ways & Means Committees Malloy McDaniel strategizes with HIDA members on key advocacy priorities prior to Capitol Hill meetings Advocacy Report Advancing Healthcare Distribution

7 HIDA Brings Industry Leaders Together To Improve Supply Chain Efficiency HIDA engages industry stakeholders and advances the value of distribution through events like the Contract Administration Conference and efforts like the Thought Leaders initiative. Justin Bowers, McKesson; Anne-Marie Johnson, The Claflin Company; Nancy Montemarano, BD; and Ken Russell, Owens & Minor, highlight the need for access to accurate price tier information at HIDA s Contract Administration Conference. Dave McKinley, Henry Schein; Javara Perrilliat, Owens & Minor; and HIDA President & CEO Matthew J. Rowan discuss ways for articulating the value of supply chain integration during the Owens & Minor Healthcare Supplier Diversity Symposium. More than 120 suppliers, GPOs, and providers attended HIDA s first-ever Contract Administration Conference to improve pricing accuracy. HIDA s ongoing Thought Leaders initiative brings distributor and manufacturer executives together to consider ways trading partners can best support care delivery across markets while accounting for healthcare s continued evolution. Advancing Healthcare Distribution 2017 Advocacy Report 5

8 2017 Calendar of Events January 17 18, 2017 Biltmore Hotel Coral Gables, Florida January 18 19, 2017 Biltmore Hotel Coral Gables, Florida March 28 31, 2017 Hyatt Coconut Point Bonita Springs, Florida April 19 20, 2017 Reunion Resort Orlando, Florida Post-Acute Long-Term Care Home Care May 16 17, 2017 Millennium Knickerbocker Hotel Chicago, Illinois June 6 7, 2017 Hyatt Regency Washington, DC September 26 28, 2017 Hyatt Regency O Hare Chicago, Illinois *Dates and locations are subject to change. DISTRIBUTION STREAMLINING HEALTHCARE SM

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