By Debbie Cai
CardioNet Inc. (BEAT) has signed a three-year deal allowing its
wireless medical devices to be covered by UnitedHealthcare Group
Inc. (UNH).
Shares of CardioNet soared 36% to $4.37 after hours. Through the
close, the stock is up 50% over the past 12 months.
The agreement, effective July 1, expands UnitedHealthcare's
coverage to include CardioNet's mobile cardiac outpatient
telemetry, or MCOT, used to diagnose and monitor cardiac
arrhythmias--or irregular heartbeat.
UnitedHealth found MCOT to be proven for multiple indications,
concluding that mobile outpatient telemetry provides more effective
detection of infrequent cardiac arrhythmias than external, loop
monitors, according to CardioNet.
The deal applies to all UnitedHealthcare affiliated entities,
including managed Medicare and managed Medicaid plans.
UnitedHealthcare provides coverage to more than 70 million members
in the U.S.
In April, CardioNet reported its first-quarter loss narrowed as
segment sales improved while UnitedHealth said its first-quarter
earnings fell 14% as higher medical bills continued to outpace
increased revenue.
Shares of UnitedHealth closed at $63.68 and were unchanged after
hours. The stock is up 18% over the past six months.
Write to Debbie Cai at debbie.cai@dowjones.com
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