DOW JONES NEWSWIRES
CardioNet Inc. (BEAT) said it was "disappointed" in a decision
by the federal agency that administers Medicare and Medicaid to
keep the reimbursement rates on some of its technology as
carrier-priced for next year.
Shares dropped 15% to $6.10 in light premarket trading after the
announcement. As of Friday's close, the stock has dropped 58% in
the past year.
The company, which makes systems that monitor heart rhythm
disorders for people on an outpatient basis, said the Centers for
Medicare and Medicaid Services has proposed that the technical
component of mobile cardiovascular telemetry should stay
carrier-priced for 2011.
CardioNet had been trying to obtain a national reimbursement
rate for the technology, as it has recently seen regional
administrators of Medicare services cut their reimbursement
rates.
There is now a public-comment period before CMS makes its final
ruling, which is expected by Nov. 1.
"We will work diligently during the public-comments period to
request that CMS change its recommendation to one that is more
beneficial to Medicare recipients who depend on" the technology,
said CardioNet President and Chief Executive Joe Capper.
CardioNet in April said its first-quarter loss widened
significantly as revenue declined, margins fell and the company
took a hit on one-time charges such as restructuring.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;