BioTelemetry, Inc. Announces Reduction to Medicare Reimbursement for Remote Cardiac Monitoring Services
December 04 2013 - 2:50PM
BioTelemetry, Inc. (Nasdaq:BEAT), the leading wireless medical
technology company focused on the delivery of health information to
improve quality of life and reduce cost of care, announced that the
Centers for Medicare and Medicaid Services ("CMS") has published a
reduction to the reimbursement for remote cardiac monitoring
services effective January 1, 2014. This reduction will impact all
providers of remote cardiac monitoring services and will result in
a 13.7% decrease to the national reimbursement rate for the MCOTTM
service. If these rates had been in effect for 2013, we
estimate that the Company's revenue would have been negatively
impacted by approximately 3.8%.
Joseph H. Capper, President and Chief Executive Officer of
BioTelemetry, commented: "We are disappointed that CMS has taken
this approach and will work hard to guide them to a more accurate
assessment of the direct costs associated with these services and
to the proven cost savings they deliver. However, it is
important to note that this will not change the Company's strategic
direction. If anything, it reinforces our approach to
achieving sustained long-term growth by solidifying our leadership
position in remote cardiac monitoring; building a leading research
services business; and identifying markets that would benefit from
the application of our wireless platform and proprietary
technology. In addition, we are confident that our discipline
of driving continuous operational improvements will help to
mitigate the impact of this reduction."
About BioTelemetry
BioTelemetry, Inc., formerly known as CardioNet, Inc., is the
leading wireless medical technology company focused on the delivery
of health information to improve quality of life and reduce cost of
care. The Company currently provides cardiac monitoring
services, original equipment manufacturing with a primary focus on
cardiac monitoring devices and centralized cardiac core laboratory
services. More information can be found at
www.biotelinc.com.
Cautionary Statement Regarding Forward-Looking
Statements
This document 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, the effects of the CMS rate reduction and the Company's
ability to mitigate the effect of such reduction, the prospects for
our products and our confidence in the Company's future, as well as
our expectations regarding the effect the United contract will have
on the company's operating results. 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 these expectations, and could cause actual outcomes and results
to differ materially from current expectations. These factors
include, among other things, effects of changes in health care
legislation, effectiveness of our cost savings initiatives,
relationships with our government and commercial payors, changes to
insurance coverage and reimbursement levels for our products, 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, the continued
consolidation of payors, acceptance of our new products and
services, patent protection, adverse regulatory action, and
litigation success, our ability to successfully create a new
holding company structure and to anticipate the benefits of such
structure. 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.
CONTACT: BioTelemetry, Inc.
Heather C. Getz
Investor Relations
800-908-7103
investorrelations@cardionet.com
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