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Medical Company Fires Nearly 100 Employees, Blames Cost of ‘Obamacare’

Feb. 1, 2013 1:06pm

Medical company Smith & Nephew fired roughly 100 employees at its Memphis, Tenn., and Massachusetts offices, citing the medical device tax included in The Patient Protection and Affordable Care Act (i.e. “Obamacare”), a Fox affiliate in Memphis reports.

“Inside sources told FOX13 News the layoffs at Smith & Nephew in Memphis went on through most of Thursday morning and afternoon. These sources say employees who were laid off were escorted out of the building immediately,” the report reads. “The company says it laid off less than 100 employees between its Tennessee and Massachusetts offices.”

The company released a statement explaining the reason for the layoffs: “The nearly $30 billion tax on medical devices that took effect Jan. 1, 2013, has impacted a number of companies across the U.S.”

The statement adds that the company is not exempt from the multi-billion dollar medical device tax included in President Obama’s healthcare overhaul.

“Unfortunately, and in order to absorb this cost burden into our business, this has meant less than 100 positions have been made redundant across various departmental functions in our Tennessee and Massachusetts sites,” the statement reads.

“The company is providing the affected employees with a comprehensive severance package and outplacement support,” it adds.

But here’s something: The company was recently fined millions of dollars by the Securities and Exchange Commission after an investigation dating back to 1997 showed that Smith & Nephew used “off-the-books money from its distributor in Greece for cash incentives to encourage providers to buy smith & nephew products.”

When asked by FOX13 News whether the layoffs had anything to do with the SEC’s $16.8 million fine, a spokesman simply replied, “The Med Device tax is a yearly tax.”

“The company also saw an eight-percent decrease in its recent third quarter profits. Smith & Nephew took a hit after a hip replacement recall in June 2012,” FOX13 News explains.

Smith & Nephew says it will provide the laid off employees with “a comprehensive severance package and outplacement support.”

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Comments (116)

1 2 3
  • Snowleopard {gallery of cat folks}
    Posted on February 1, 2013 at 2:07pm

    In the insane world of Obama he is achieving his goal of collapsing the economy.

    Has anyone considered that this may be part of his ‘green energy’ scam in which to have ‘sustainable resources for the future’ he has to ’cause the nations economy to zero out across the board.’

    Report this comment

    Snowleopard {gallery of cat folks}  
  • moreteaplease
    Posted on February 1, 2013 at 2:06pm

    marybethelizabeth
    Posted on February 1, 2013 at 1:29pm

    marybethelizabeth
    Posted on February 1, 2013 at 1:29pm

    And in other news, Wal-Mart pays it’s trainees $17.00 an hour with a guaranteed 40 hour work week (so benefits are also paid) at their stores in North Dakota.

    They can afford this nationwide.

    It would happen too if you boot lickers would shut up and stop repeating anti-worker propaganda.
    Supporting government policies that benefit the wealthy has put the country in a downward spiral.
    ——————————————–
    Well, that was good for a laugh! Keep holding your breath.

    Report this comment

    moreteaplease  
    • love the kids
      Posted on February 1, 2013 at 2:20pm

      If that is what they are paying there, it is because of the free market system, need more employees because of the increase of jobs. Something Obummer says he is for, but then just closed his “Jobs council” this past week. People, you have been snowed, he needs unemployed folks to be on his system and then scare you into yhinking all the republicans want to do is have you un-employed. They really want you to have a job.

      Report this comment

      love the kids  
    • barber2
      Posted on February 1, 2013 at 3:12pm

      How many more times will you repeat her idiocy ?

      Report this comment

      barber2  
    • American_Made
      Posted on February 1, 2013 at 5:40pm

      Really, this is what comes on here to promotes the left agenda. What a joke. the point being it does not matter if they can afford it or not, It is none of the Governments business. Want medical insurance get a job that earns enough to buy it. Walt-mart does not offer it don’t work for Walt-Mart. You are no longer a free country when the Government tells you what to buy.

      Report this comment

      American_Made  
    • The Realist
      Posted on February 1, 2013 at 6:41pm

      To the person quoted
      The REASON that WalMart is paying 17 an hour is because of an OIL BOOM you dimwit liberal.
      http://m.startribune.com/?id=1885039713

      Report this comment

      The Realist  
  • rfycom
    Posted on February 1, 2013 at 2:05pm

    Bet you $2.15 the decisions makers are republican.

    Report this comment

    rfycom  
  • Outlaw_Josey_Wales
    Posted on February 1, 2013 at 1:59pm

    Get ready for the Obamacare recession.

    Report this comment

    Outlaw_Josey_Wales  
  • skippy6
    Posted on February 1, 2013 at 1:54pm

    Just as I said it would my repeal Barry care bumper sticker is gaining appeal. I bought 1000 of them for fifty cents per sticker.. I will soon sell them for $5 to the suckers that voted for barry…

    Report this comment

    skippy6  
  • term limits for congress
    Posted on February 1, 2013 at 1:52pm

    These were permanent positions. I wonder how many contractors were quietly laid off.

    These 100 permanent positions will probably be replaced with 300 contractor positions… in India. I admire the companies that do not do this, but the US has become a hostile work environment.

    Report this comment

    term limits for congress  
    • hobbes1069
      Posted on February 1, 2013 at 6:00pm

      Seeing as I was there (DISCLAIMER: I’m not an executive or even manager)… As far as I know no contractors were laid off and none are planned to be hired as replacements.

      Report this comment

      hobbes1069  
  • Mathchopper
    Posted on February 1, 2013 at 1:41pm

    O’Bummer’s strategy to kill Capitalism with Socialism is working well, isn’t it?

    Report this comment

    Mathchopper  
    • CatB
      Posted on February 1, 2013 at 1:56pm

      Yes … right according to plan .. btw did you know people that not only does this tax effect your healthcare costs but also .. your pets? Yes it does .. these taxes are also on supplies and other equipment used by vets in their practices.

      Report this comment

      CatB  
  • barber2
    Posted on February 1, 2013 at 1:36pm

    Remember , folks, the Democrats actually called this The ” Affordable” Health Care Act . Just like they collapsed the housing and banking industries with their ” Affordable ” Housing boondoggle. Remember the ACORN members in bakers’ front yards ?? Amazing what these radical Democrats can get away with, and how dumb the American people are…. Thanks MSM…

    Report this comment

    barber2  
    • CatB
      Posted on February 1, 2013 at 2:00pm

      Did you hear .. the average yearly premium for the lowest cost family plan (bronze) is going to be $20,000 per year! It was “quietly” reported last night. Affordable? Not hardly.

      Report this comment

      CatB  
    • BARRYS_BEARD
      Posted on February 1, 2013 at 2:07pm

      “the Democrats actually called this The ” Affordable” Health Care Act . ”

      In all fairness, they simply didn’t know and could not have known what was in the Act until they passed it.

      (Hint for the slow readers: My comment includes an element of sarcasm.)

      Report this comment

      BARRYS_BEARD  
  • WillG
    Posted on February 1, 2013 at 1:35pm

    All over the state of Tennessee companies are closing or down sizing. All of the 56 other states as well. The Dalai Bamas plan is working.

    Report this comment

    WillG  
  • Witness1974
    Posted on February 1, 2013 at 1:35pm

    Just the beginning. There will be a lot more people losing jobs across all sectors of the economy, except government. Also, get used to the idea of suffering and dying because unless something is done we are all going to see a lot more of it.

    Report this comment

    Witness1974  
    • greatgrandma
      Posted on February 4, 2013 at 2:57am

      Hope the employers checked who their people voted for, and get rid of all the Obama supporters. Just sayin………….

      Report this comment

      greatgrandma  
  • barber2
    Posted on February 1, 2013 at 1:31pm

    And Barack Obama and the radical Democrat’s War on American capitalism continues…

    Report this comment

    barber2  
    • strawberry411a
      Posted on February 1, 2013 at 1:37pm

      Obama has a specific agenda to destroy this country and he is doing it right before our eyes.

      Report this comment

      strawberry411a  
    • barber2
      Posted on February 1, 2013 at 1:55pm

      STRAW: I agree. Just watching the radical Democrats daily actions and inaction make this goal quite ” transparent”

      Report this comment

      barber2  
    • BARRYS_BEARD
      Posted on February 1, 2013 at 2:12pm

      I agree 100%. What I find frustrating are those (including many “conservative” talk radio personalities”) who continue to describe the Kenyan as incompetent. He is absolutely NOT incompetent. He knows exactly what he is doing. His actions are absolutely not the result of incompetence. His actions are very deliberate and unfortunately for us, they are working according to his plan. It would be nice if someone on the radio or the tv would grow a pair and actually talk about the truth rather than trying to cover for the POS by describing him as simply someone who doesn’t know what he is doing.

      Report this comment

      BARRYS_BEARD  
    • dc5
      Posted on February 1, 2013 at 2:37pm

      Aided by the Rep, unfortunately. They are willing collaborators.

      Report this comment

      dc5  
    • barber2
      Posted on February 1, 2013 at 3:24pm

      DC: I think the Republicans are cowards BUT the Democrat Media Character Assassination Squad has been quite effective in making them so. We have seen more bullying, smearing and intimidation in the past four years than I have ever seen. These radical Democrats are like jack-booted Nazis : they use union mobs, international groups of anti-capitalists like OWS , and the MSM to decimate anyone who stands up to them. Smeared and Tarred in the media 24/7. And UNLESS someone stands up to the Democrats’ War on our capitalist system with their irresponsible spending and policies, we are doomed. The Democrats and their MEDIA are destroying this country ( they call it ” change” with a wink )

      Report this comment

      barber2  
    • Anonymous T. Irrelevant
      Posted on February 1, 2013 at 4:21pm

      Don’t forget the help of the MSM!! They are all traitors.

      Report this comment

      Anonymous T. Irrelevant  
    • AUsername
      Posted on February 1, 2013 at 5:20pm

      looks like goverment healthcare is coming sooner than expected, i think 90 percent or more will pay penalty or refuse to pay healthcare companies for insurance and that will result in the downfall of insurance companies and than goverment healthcare. better get yourself in shape and be strong because only the strong survive goverment healthcare of long waits, death panels and shortage of treatments. just talk to the folks in Canada about it they will tell ya.

      Report this comment

      AUsername  
  • jackact
    Posted on February 1, 2013 at 1:30pm

    So with 50 million on food stamps, over 25 million unemployed, zero percent job growth in four yesrs and yesterday’s revelation that added an additional 10% debt to the deficit Obama says everything is improving?

    Report this comment

    jackact  
  • lawrench
    Posted on February 1, 2013 at 1:30pm

    I am sue this is just the beginning of many more this year. Now we should all be prepared for the next phase of the Presidents economic recovery: INFLATION! and UNEMPLOYMENT!

    Report this comment

    lawrench  
  • marybethelizabeth
    Posted on February 1, 2013 at 1:29pm

    And in other news, Wal-Mart pays it’s trainees $17.00 an hour with a guaranteed 40 hour work week (so benefits are also paid) at their stores in North Dakota.

    They can afford this nationwide.

    It would happen too if you boot lickers would shut up and stop repeating anti-worker propaganda.
    Supporting government policies that benefit the wealthy has put the country in a downward spiral.

    Report this comment

    marybethelizabeth  
    • bullcrapbuster
      Posted on February 1, 2013 at 1:37pm

      Stop being silly Mawwy.

      Report this comment

      bullcrapbuster  
    • GoodStuff
      Posted on February 1, 2013 at 1:37pm

      Take a pill Mary.

      Walmart is paying that much in ND , because with the Bakken oil fields, they desperately need employees. That doesn’t translate across the country.

      Report this comment

      GoodStuff  
    • drs1969
      Posted on February 1, 2013 at 1:38pm

      Wal Mart is building in new territory w/o competition. I never go to Wal-Mart here. I have choices. Get back to this
      ‘bootlicker’ in a few years, when competition has moved in, or the Gas Rush is over. Can you say ghost town?

      Report this comment

      drs1969  
    • Gonzo
      Posted on February 1, 2013 at 1:39pm

      If you don’t want to work for Walmart then don’t. I’m sure they’ll survive without you. Has anyone ever been FORCED to work for Walmart in the company’s history? I don’t think so.

      Report this comment

      Gonzo  
    • barber2
      Posted on February 1, 2013 at 1:43pm

      MBE: Your parroted nonsense and basic ignorance of economics is staggering. You are the perfect tool of the radical Democrats and they use you well…

      Report this comment

      barber2  
    • Fubared
      Posted on February 1, 2013 at 1:45pm

      BarryMeth
      Why is ND booming and willing to pay that much?

      Report this comment

      Fubared  
    • AvengerK
      Posted on February 1, 2013 at 2:12pm

      Oh look…HAIRYMETH is telling companies what they can and can’t afford. We’re in the presence of an accounting genius it seems.

      Report this comment

      AvengerK  
    • BARRYS_BEARD
      Posted on February 1, 2013 at 2:16pm

      Isn’t it interesting how utilizing our natural resources provides benefits to all? I wonder why the Kenyan lord and savior hasn’t thought about that. Any thoughts, SCARYMARY?

      Report this comment

      BARRYS_BEARD  
    • marybethelizabeth
      Posted on February 1, 2013 at 2:21pm

      Barber2 find someplace else on the internet where this point was made. it is not parroted information.
      And

      Explain my ignorance of economics to show how a store with higher labor costs and other higher fixed cost such as increased costs due to transporting the goods for sale to North Dakota can operate at a profit but that model doesn’t transfer to other store locations

      Report this comment

      marybethelizabeth  
    • Outlaw_Josey_Wales
      Posted on February 1, 2013 at 2:32pm

      Wal-Mart in Williston ND is paying $17.00 per hour for trainees because of the oil drilling boom. Also the store in Williston ND has high sales volumn because of the boom, this will help pay the higher wages needed to get people to work in that store. The drilling boom will end some day in ND, lots of people will leave the area looking for work. The wages at that Wal-Mart store will go down, property values will fall, unemploymenty will be high. I worked in the oil drilling industry for over 40 years, I seem booms come, I seem booms go, and that’s the way it is!

      Report this comment

      Outlaw_Josey_Wales  
    • BARRYS_BEARD
      Posted on February 1, 2013 at 2:39pm

      Wal*Mart has no incentive to pay higher wages in areas where the unemployment rate is 10% or more (Thank you Barry). The unemployment rate in NoDak is around 3%. Its a supply and demand type of thing SCARYMARY. Just think if your lord and savior BahRahk would allow drilling on federal land. Perhaps the economy would improve. Funny how that works.

      Report this comment

      BARRYS_BEARD  
    • R00STER
      Posted on February 1, 2013 at 2:53pm

      HairyMeth.. I like that haha.. Anyway will you please explain to me why liberals only comment or respond to questions that are hypothetical or context/symantics rather than the factual ones? Why are liberals answers Always hypothetical/symantics as well? Why do liberals refuse to debate facts with facts HairyMeth?

      Report this comment

      R00STER  
    • Zipit
      Posted on February 1, 2013 at 2:59pm

      MerryMeth! It’s fairly simple!!! If you can’t open your doors because you have no employees, then your profit is zero. The products at these stores will be more expensive! (Supply and demand). Wages and salaries will be higher. (As necessary, to compete with other business). Profit margins will most likely be lower, but the stores will be open, employing people and showing enough profit, to make sending all those trucks up there worth the effort! Questions?

      Report this comment

      Zipit  
    • AvengerK
      Posted on February 1, 2013 at 3:30pm

      ROOSTER…because the straw man is what lefties use to foment trouble. This is nothing but “99%” classwarfare garbage from HAIRYMETH..it’s lefty rote. She says this stuff to herself before she goes to sleep each night.

      Report this comment

      AvengerK  
    • JeffMT
      Posted on February 1, 2013 at 4:47pm

      MaryBethElizabeth: Read Outlaw Josey Wales post about economic conditions in Williston – that about covers it when it comes to explaining why Wal Mart can pay $17/hour.

      Have you been to Williston, MBE? I have, numerous times and I can tell you it is literally the Wild West over there. Prices for EVERYTHING are sky high. A gallon jug of drinking water at Wal Mart will generally run 79 cents to 99 cents in this part of the country. In Williston, they could charge $3 or $4 for a gallon of drinking water and they would get it. And they would still run out of it hours after they stock the shelves. The same thing for other basic grocery items. It’s called supply and demand.

      The same is true for employees. Did you know that the McDonald’s in Sidney had had to close their walk in/seating area and handle only customers that come thru the drive up because they could not get enough people to work there to staff the store normally, regardless of what they were offering for hourly pay. Numerous restaurants of all types in the western ND/eastern MT area have the same problem – they can’t keep people because they cannot afford to pay them market rate and keep their doors open.

      So, there’s the economics lesson for you, and unless you’ve been over there and experienced it, it is hard to believe, but it is true. Go online and read the Williston and Dickinson ND papers and the Sidney, MT paper. There are stories in them about this all the time.

      Report this comment

      JeffMT  
    • ObserverOnTheHill
      Posted on February 1, 2013 at 7:14pm

      and so we here from another low information voter who has no clue how free markets work

      Report this comment

      ObserverOnTheHill  
  • banjarmon
    Posted on February 1, 2013 at 1:29pm

    BLAME the Uninformed Voter….”I want my obama phone!!!!”

    Report this comment

    banjarmon  
  • uncleherbert
    Posted on February 1, 2013 at 1:27pm

    lean forward, really, really does mean bend over…

    Report this comment

    uncleherbert  
  • Cavallo
    Posted on February 1, 2013 at 1:26pm

    This is common place. You just don’t get news stories over it very much because it doesn’t fit the narrative. Just wait until the other business taxes start to take their toll. Taxes, are a cost.. it shrinks your margin between profit and loss, and you either cut costs (like labor) or you increase prices, or both.

    Report this comment

    Cavallo  
    • barber2
      Posted on February 1, 2013 at 1:49pm

      And their idiot tools , like MaryBeth, will blame the rich and the capitalists when, like the hosing collapse, it was all caused by very bad Democrat pushed policies. Takes a while to kill a successful capitalist system , but the radical Democrats have been working on their for several years. The housing messes started back under Clinton. Bill Ayers, who gets up each morning trying to do what he can to ” end capitalism, ” must be thrilled.

      Report this comment

      barber2  
    • dc5
      Posted on February 1, 2013 at 2:34pm

      Barber 2- It wasn’t only the Dems, unfortunately. The Reps collaborated big time, specially under Bush. The GOP must not be trusted either.

      Report this comment

      dc5  
    • barber2
      Posted on February 1, 2013 at 3:10pm

      DC5: The Democrats pushed it though. Played the Discrimination Card on the banks and the Republicans. The Republicans were too weak to stand up to the Democrats and say to “no” to avoid the mess. And the Republicans have been too weak ever since…AND the Democrats have continued to play the Discrimination Card to ruin this country and to garner them votes. Weak Republicans, anti-capitalist / Discrimination Card wielding Democrats. Bottom line : Ruining our economy .

      Report this comment

      barber2  
  • Vilgax
    Posted on February 1, 2013 at 1:24pm

    A liberal’s heaven! “Ah I love the smell of unemployment in the morning”.

    Report this comment

    Vilgax  
  • biohazard23
    Posted on February 1, 2013 at 1:24pm

    Soooo, since they passed the bill, is anyone actually liking what’s in it?? Anyone outside the beltway, that is.

    Anyone? Anyone? Bueller?

    Report this comment

     
    • Cavallo
      Posted on February 1, 2013 at 1:30pm

      Dead beat college grads with degrees in lesbian historical art, living on their parent’s insurance until they are 26?

      Report this comment

      Cavallo  
    • RaydocX
      Posted on February 1, 2013 at 2:05pm

      @Cav…
      nice image, there… worth the first afternoon smile.
      but even 26 years old with history of transgender politics degrees have to get a job at some point… their parents are going to have to take borders to cover the cost of keeping the house.

      Report this comment

      RaydocX  
    • biohazard23
      Posted on February 1, 2013 at 2:06pm

      All of whom are named Julia, no doubt. LOL!

      Report this comment

       
    • Fubared
      Posted on February 1, 2013 at 3:37pm

      http://cnsnews.com/news/article/irs-cheapest-obamacare-plan-will-be-20000-family

      Report this comment

      Fubared  
    • Zipit
      Posted on February 1, 2013 at 4:40pm

      CAV! Sounds to me like the perfect description of METEORS!!! And Bio, I was convinced for a while that Meteors was actually Sandra Fluke, I think Julia is the perfect first name for Meteors! So let it be written, so let it be done! “@JULIA!”

      Report this comment

      Zipit  
    • biohazard23
      Posted on February 1, 2013 at 5:47pm

      Hey, guys! Before I go for the day, here’s the Julia Cav described in his post. Y’all remember her from the campaign, right? Of course, dear leader thinks Julia is just swell, but she’s really just pathetic.

      http://www.barackobama.com/life-of-julia

      Oh yeah, GO RAVENS! Have a great weekend. :)

      Report this comment

       
  • whatthecrazy
    Posted on February 1, 2013 at 1:23pm

    Just asking?My mother just called me from Ft Worth Texas (im in Shreveport)an told me she was not allowed to get money from her bank, Bank of America and was told this was Nation wide.Has anybody heard this yet?

    Report this comment

    whatthecrazy  
    • drs1969
      Posted on February 1, 2013 at 1:34pm

      It wouldn’t be the first time. They’ll call it a hacker attack when, in reality, it’s a ‘bank holiday’. No one should have money in this bank. It would already be closed if the gov. wasn’t bailing it out.

      Report this comment

      drs1969  
    • Cavallo
      Posted on February 1, 2013 at 1:53pm

      It could also be the period of time that the bank holds your money and does not allow it to be withdrawn after deposit. But still DRS1969 is correct. DO NOT DO BUSINESS WITH BANK OF AMERICA. They are unethical swine. They only give a rats behind about their large corporate accounts and sometimes not even then.

      Report this comment

      Cavallo  
    • CatB
      Posted on February 1, 2013 at 2:05pm

      No Bank of America .. and always have cash on hand if you can. Find a community (local) bank to do business with.

      Report this comment

      CatB  
    • barber2
      Posted on February 1, 2013 at 3:06pm

      Didn’t B of A buy CountryWide of the Chris Dowd housing loan disaster ? Why ? Dumb economic decision unless there was some political ” reason” for them to do so. This entire matter was swept way under the rug and would have had the Democrat party run out of town had the MSM not been already in their pocket and covering for them. The ” Affordable Housing Act” brought our economy to a halt…the Democrats have been riding that fall ever since.

      Report this comment

      barber2  
    • AUsername
      Posted on February 1, 2013 at 5:13pm

      Anonymous help the people out on this if you can.

      Report this comment

      AUsername  
  • EQUALIZER
    Posted on February 1, 2013 at 1:18pm

    All according to Obama’s master plan, things are falling in line nicely!

    Report this comment

    EQUALIZER  
  • Gonzo
    Posted on February 1, 2013 at 1:13pm

    Convenient how all these hidden gems of Obamacare didn’t kick in until after the election. Just a coincidence I’m sure.

    Report this comment

    Gonzo  
  • dadsrootbeer
    Posted on February 1, 2013 at 1:13pm

    Do you mean that yet another progressive boondogle bill is going to hurt the country and not do what they said it would. Let me put on my shocked face….

    Report this comment

    dadsrootbeer  
    • Shasta
      Posted on February 1, 2013 at 1:24pm

      It is never going to do what they said it would do. But it will do what they wanted it to do. Garnish power for them and redistribute our wealth and health.

      Report this comment

      Shasta  
  • boiz
    Posted on February 1, 2013 at 1:13pm

    Be sure to thank Obama as you sign up for unemployment.

    Report this comment

    boiz  
  • AvengerK
    Posted on February 1, 2013 at 1:10pm

    and the hits just keep coming.

    Report this comment

    AvengerK  
    • Gonzo
      Posted on February 1, 2013 at 1:18pm

      I wonder how many out of that group voted for the Marxist?

      Report this comment

      Gonzo  
    • RANGER1965
      Posted on February 1, 2013 at 1:52pm

      The only question you need to ask yourself is this.

      Once they are comfortably ensconced with unemployment checks, unemployment insurance, food stamps, housing aid, Obama phone, and are making about 45k a year without having to pay for food, medical care, phone bill, and only tiny amount for rent….

      Will they go hunting for a job?

      And if not, who will they vote for in 2016. The Democrat that promises infinite unemployment benefits, or the other guy that’s talking about cutting spending?

      Report this comment

      RANGER1965  
    • Snowleopard {gallery of cat folks}
      Posted on February 1, 2013 at 2:07pm

      And each hit to come will grow worse and worse.

      Report this comment

      Snowleopard {gallery of cat folks}  
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