AdvaMed Applauds Congressional Passage of CARES Act

WASHINGTON, D.C. – Today, AdvaMed President and CEO Scott Whitaker released a statement applauding congressional passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“These are extraordinary times, and we appreciate Congress for responding in an extraordinary way,” said Scott Whitaker, President and CEO of AdvaMed. “The latest relief package will help keep medical technology manufacturers afloat in the face of economic turmoil, and it will enable them to operate at the highest possible levels to combat COVID-19. Patients and the global health care system are counting on our industry to continue delivering the tools they need to prevent, diagnose, and treat this disease. Thanks to quick action by Congress and the administration, we feel even more confident in our ability to do just that. Still, many small medical technology companies may need additional help, and we look forward to working with Congress and the administration on that front as they consider future relief legislation.”

The CARES Act includes several key provisions to aid medical technology manufacturers.

  • In order to preempt supply chain and device shortages, CARES requires the strategic national stockpile to include certain medical devices necessary for diagnosing and treating COVID-19. It adds $16 billion in federal funding for the Strategic National Stockpile for medical supplies, personal protective equipment and medicine.  
  • CARES provides permanent liability protection for manufacturers of personal respiratory protective equipment, such as masks and respirators, in the event of a public health emergency.
  • CARES extends the 50/50 transition payment amount for durable medical equipment (DME) provided in rural areas through the end of the public emergency period and creates 75/25 transition payment amount for DME items provided in non-CBA areas.

Additionally, CARES includes several positive tax and payment relief provisions for medical technology manufacturers.

  • CARES delays private payer data reporting for laboratory payment purposes for one year (January – March 2022) and freezes payment rates for 2021 at the 2020 levels.
  • CARES offers net operating loss tax relief; NOLs from tax years 2018, 2019, or 2020 may be carried back five years. It also offers funding to reimburse providers for health care related expenses or lost revenues that are directly attributable to the coronavirus.
  • CARES will expand an existing Medicare accelerated payment program for the duration of the COVID-19 emergency period.

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


Chris J. Stewart

Chris currently serves as President and CEO of Surgio Health. Chris has close to 20 years of healthcare management experience, with an infinity to improve healthcare delivery through the development and implementation of innovative solutions that result in improved efficiencies, reduction of unnecessary financial & clinical variation, and help achieve better patient outcomes. Previously, Chris was assistant vice president and business unit leader for HPG/HCA. He has presented at numerous healthcare forums on topics that include disruptive innovation, physician engagement, shifting reimbursement models, cost per clinical episode and the future of supply chain delivery.

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