DOW JONES NEWSWIRES
CardioNet Inc. (BEAT) said a regional administrator of Medicare
services confirmed it will cut its reimbursement rate for mobile
cardiovascular technology Sept. 1.
The rate - $754 per service - is 33% less than the rate HMS
published in May.
CardioNet's shares sank 15% to $6.12 in after-hours trading as
the pioneer in remote monitoring of heart patients said it would
not provide guidance because of the impact that the lower rate
would have on its business. The stock is down about 70% this
year.
Last month, CardioNet's shares fell sharply after it disclosed
that Highmark Medicare Services had proposed the lower
reimbursement rate for a monitoring program using CardioNet's
technology.
A Highmark spokesman said then that the company establishes such
rates after careful evaluation of Medicare requirements.
CardioNet Chief Executive Randy Thurman has estimated that
similar monitoring in hospitals costs $26,000.
The company said Monday that it intends to comply with
Highmark's offer for it to provide additional information that
Highmark would review it in a reasonable time and adjust the rate
if appropriate.
"We will be persistent in pursuing every appropriate means to
remedy this situation," Thurman said.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com