CardioNet, Inc. Announces Highmark Medicare Services Reimbursement Reduction Regarding CPT Code 93229
July 12 2009 - 7:23PM
Business Wire
CardioNet (Nasdaq: BEAT), announced today that on Friday, July
10, 2009, it received a letter from Highmark Medicare Services
stating effective September 1, 2009 Highmark was adjusting its
reimbursement rate for MCOT� services to $754 per service. This
reimbursement change affects all providers covered under CPT Code
93229.
Randy Thurman, Chairman, President and CEO of CardioNet, Inc.,
said, �CardioNet strongly believes that this reduction is
unjustified and will immediately pursue with Highmark and CMS a
methodology that appropriately values MCOT� technology and related
services. This review with Highmark and CMS will reinforce for
Medicare the demonstrated benefit of Mobile Cardiac Outpatient
Telemetry� in detecting cardiac arrhythmias and improving the
health of Medicare beneficiaries.
�We are strong proponents and supporters of the very real need
to manage the cost of healthcare. We believe that early diagnosis
through innovation in technology is fundamental to the provision of
high quality health care and a cost efficient US healthcare system.
Nearly 250,000 patients have been enrolled in MCOT� to date with
physicians and patients greatly benefiting from the CardioNet MCOT�
technology and service. We have made it our mission at CardioNet to
educate the medical community about the value of wireless medicine
in the diagnosis and detection of disease and we will further
increase our efforts to demonstrate its potential to substantially
lower costs to both patients and payors.�
CardioNet has previously indicated that while it had been aware
Highmark Medicare Services was conducting a normal review of the
reimbursement rate for MCOT�, it had received no indication of any
rate adjustment or the specific timing of a Highmark decision prior
to being notified on July 9, 2009. During a July 9 communication,
Highmark reported that CardioNet would receive a letter notifying
it of a change in reimbursement including the exact amount of the
change. That letter arrived July 10, 2009.
Based on the Company�s ongoing discussions with Highmark and CMS
and the Company�s desire for a re-evaluation of reimbursement that
it is pursuing, but cannot assure will be realized, the Company
believes it is prudent to withdraw previously stated 2009 guidance
at this time.
About CardioNet
CardioNet is the leading provider of ambulatory, continuous,
real-time outpatient management solutions for monitoring relevant
and timely clinical information regarding an individual's health.
CardioNet's initial efforts are focused on the diagnosis and
monitoring of cardiac arrhythmias, or heart rhythm disorders, with
a solution that it markets as Mobile Cardiac Outpatient TelemetryTM
(MCOT�). More information can be found at
http://www.cardionet.com.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, our growth prospects, the prospects for our products and
our confidence in the Company's future. These statements may be
identified by words such as "expect," "anticipate," "estimate,"
"intend," "plan," "believe," "promises" and other words and terms
of similar meaning. Such forward-looking statements are based on
current expectations and involve inherent risks and uncertainties,
including important factors that could delay, divert, or change any
of them, and could cause actual outcomes and results to differ
materially from current expectations. These factors include, among
other things, the potential for re-evaluation from Highmark or the
CMS, the success of our sales and marketing initiatives, our
ability to attract and retain talented executive management and
sales personnel, our ability to identify acquisition candidates,
acquire them on attractive terms and integrate their operations
into our business, the commercialization of new products, market
factors, internal research and development initiatives, partnered
research and development initiatives, competitive product
development, changes in governmental regulations and legislation,
changes to reimbursement levels for our products, the continued
consolidation of payors, acceptance of our new products and
services and patent protection and litigation. For further details
and a discussion of these and other risks and uncertainties, please
see our public filings with the Securities and Exchange Commission,
including our latest periodic reports on Form 10-K and 10-Q. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
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