CardioNet Provides Update on Communications with Highmark Medicare Services Regarding Mobile Cardiovascular Technology Reimbu...
August 31 2009 - 5:55PM
Business Wire
CardioNet, Inc. (NASDAQ:BEAT) announced that Highmark Medicare
Services (HMS) confirmed it will implement its reduced
reimbursement rate for mobile cardiovascular technology on
September 1, 2009. The rate - $754 per service – represents a 33
percent reduction from the $1,123 reimbursement rate which HMS had
just published in May 2009. In communications between CardioNet and
HMS in April 2009, HMS had also said there was no pending change.
Then on July 10, 2009, for the first time and inconsistent with
HMS’ previous history of communicating such changes, CardioNet
received written notice of the planned decrease. HMS provided
CardioNet with no advance opportunity for dialogue related to this
dramatic change.
CardioNet has worked with HMS to provide complete and fact-based
information that the Company believes substantiates a significantly
higher rate of reimbursement. In its communication to CardioNet
today, HMS stated CardioNet can provide additional information and
that HMS would review it within a reasonable time and further
adjustment to the allowance would be made, if appropriate.
CardioNet intends to pursue this approach as well as work with CMS
to arrive at a justifiably higher level of reimbursement.
Randy Thurman, CardioNet Chairman, President and CEO, commented,
“We are very disappointed at HMS’ decision and believe strongly
that CardioNet and other industry providers brought compelling data
to HMS to justify a higher level of reimbursement. We will be
persistent in pursuing every appropriate means to remedy this
situation. Mobile cardiac telemetry technology has now been used in
over 300,000 patients nationwide and utilization of CardioNet’s
MCOTTM continues to grow among cardiologists and
electrophysiologists. The industry invested hundreds of millions of
dollars in research and development and building infrastructure to
bring MCOTTM technology to the market. Physicians, payors and, most
importantly, patients have benefited greatly from this technology.
This surprise decision by HMS on July 10, 2009 must be readdressed
and not be allowed to put at risk either the investment in new
technologies or the benefit to the patients we serve.”
Based on the significant impact this price reduction would have
on CardioNet’s current business model and the ongoing nature of the
Company’s efforts to address the situation, the Company will
continue to refrain from providing updated 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
(MCOTTM). 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
Medicare Services or the CMS on reimbursement rates, or the
establishment by CMS of a national reimbursement rate, 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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