BioTelemetry, Inc. Announces Finalization of Settlement With Department of Justice
March 25 2015 - 5:33PM
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 today
the completion of the Department of Justice investigation with the
signing of a settlement agreement between the two parties. Per the
agreement, BioTelemetry will pay $6.4 million to the Department of
Justice, which was reflected in the Company's 2014 financial
statements.
The settlement relates to allegations that BioTelemetry
encouraged physicians to use two non-specified diagnosis codes to
ensure coverage of mobile cardiac telemetry between November 2008
and June 2011. It is the Company's belief that physicians
utilized these non-specified codes for palpitations, a diagnosis
that was permitted under the local coverage determination but for
which no corresponding diagnosis code was provided. On June
29, 2011, Medicare eliminated this ambiguity by adding a specific
diagnosis code for palpitations and removing the two non-specified
diagnosis codes.
Joseph Capper, President and Chief Executive Officer of
BioTelemetry, Inc., commented, "We are thankful to have the
investigation completed. As previously discussed, the Company
was not the original target of the investigation and was fully
cooperative throughout this inquiry. While we believe the
facts did not support the Government's allegations, we entered into
settlement negotiations due to the cost and burden of the
investigation on the Company. As the terms became more
reasonable, we felt that it was in the best interest of the Company
and our shareholders to settle the case. Under the terms of
the agreement, there was no determination of liability and
BioTelemetry made no admission of wrong doing. In addition,
the Company was not required to enter into a corporate integrity
agreement.
"We can now put this matter behind us and focus completely on
executing our strategy in an ethical and compliant fashion, as has
always been the case."
About BioTelemetry, Inc.
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.
BioTelemetry's 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. 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, our
ability to successfully integrate the Mednet, Biomedical Systems
and Radcore businesses into our business and the effect such
acquisitions will have on our results of operation, our ability to
successfully finalize a settlement of the Department of Justice
investigation, 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, intellectual property protection, adverse regulatory
action, and litigation success. 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@biotelinc.com
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