The Medical Innovation Zone Act
modeled on Foreign trade zones…
A Medical Innovation Zone (MIZ) is a legislative concept modeled on Foreign Trade Zone (FTZ) and Free Trade Zone laws currently in force but applies specifically to healthcare-related research, development, education and translational commercialization programs only. Healthcare consumes 10% of the Gross Domestic Product (GDP) of most developed nations. U.S. GDP in 2020 was $20.93 trillion. Every man, woman and child in the U.S. is expected to spend in excess of $11,000, which is based on a 2020 population of 331.2 million people. [1] The world population is 7.79 billion.
The Medical Innovation Zone concept is featured in our political novel, Hoya: The Watchmen Waketh (see Chapter 10, Crafting alliances)
So, programmatically:
· MIZs are global public private partnerships, anchored in the United States, designed to catalyze and expedite commercially viable or publicly desirable medical advancements and bring them to market for use by others, regardless of ability to pay initially.
· MIZs are niche-declared market-exclusive geographic territories designed to foster measurable, evidence-based advancement in specific areas of healthcare program and facility delivery.
· MIZs are significant high-paying job generators for the markets they serve and create significant revenue opportunities for the non-profit and for-profit businesses and stakeholders who actively engage in their mission.
The MIZ structure is constructed under a public-private partnership model:
· A parent corporation is established, the Medical Innovation Zone Initiative, Inc., which is 60% owned by non-profit partners (up to 10 at 6% shares each) and 40% owned by for-profit partners (up to 10 at 4% each). Non-profit net revenue generated by the partnership will be used to fund research, treatment pools, educational initiatives, job training, and more. This structure permits the use of Program Related Investment funding with offsetting principal gifts, which also permit philanthropic and private equity investments by private family foundations, family offices, pensions, trusts, and more. Philanthropic support is available for charity benefitting initiatives such as healthcare, education, job training, etc.
· National Level – A 19-member oversight and management board consisting of: nine (9) major healthcare partners, one each from 1) Northeast, 2) Mid-Atlantic, 3) South, 4) Midwest, 5) Plains, 6) Mountain, 7) Southwest, 8) Pacific, and 9) Pacific Northwest; six (6) jurisdictional federal oversight partners shall also be provided by the U.S. Department of Commerce, the U.S. Department of Health & Human Services, the U.S. Department of Labor, the U.S. International Trade Administration, the United States Senate and the U.S. House of Representatives; and, four (4) at-large members shall be elected by the membership above from the private sector who are neither a healthcare provider (hospital or healthcare professional) or government employee or representative.
· Zone Level – consists of market exclusive territories consistent with individual state boundaries as well as U.S. territories and the District of Columbia. Zone level participants shall coordinate and oversee the research, innovation and commercialization efforts of the niche-declared market exclusive territory and will work directly with Subzone members as appropriate. Zone level participants must include at least one healthcare provider, either an academic medical center, healthcare system, or community hospital sponsor who is partnered with at least one corporate partner operating in the same geographic market. Zone level participants are encouraged to collaborate with foreign healthcare partners with expertise and/or interest in their declared niche-market area. There can only be one Zone Level participant per state and it must be either an academic medical center, healthcare system, or community hospital.
· Subzone Level – consists of participating healthcare professionals and providers who are not the specific state zone sponsor and will help commercialize the intended innovation within the zone level territory and make it available to target markets who would like to benefit from the innovation.
The medical innovation zone concept is also profiled in our political magazine, thomas, found at: www.thomasmedia.org/medical-innovation-zones
Economic benefit from MIZs include: no federal ad valorem taxes, duty-free purchasing, and available U.S. corporate income tax credits based on participation level: States and their hosting counties will be encouraged to participate by providing tax-free periods on income taxes, business and corporate taxes, state and local taxes, sales and property taxes, zoning and permits. Other benefits include expedited federal (and state, if participating) regulatory issue resolution and filing approvals.
Physicians, patients, researchers, healthcare professionals and executives, diagnostics and technology providers, device makers, facility designers and suppliers, vendors, and consumers will realize direct benefit from this initiative public private partnership.
[1] Average 2016 health-care bill: $12,782" by Ricardo Alonso-Zalvidar Los Angeles Times February 21, 2007