LifeWatch receives notification from Highmark Medicare Services on lower reimbursement rates for services covered under CPT Code 93229
- IDTF industry to start discussions with Highmark to reverse unjustified decision
- Despite new reimbursement recommendation, LifeWatch confirms outlook for 2009
- Two thirds of LifeStar ACT Wireless Cardiac Monitoring services covered by separate commercial contracts
Neuhausen am Rheinfall / Switzerland July 13, 2009 - LifeWatch AG (SIX Swiss Exchange: LIFE) confirms today that its subsidiary LifeWatch Services Inc. has received a letter issued by Highmark Medicare Services announcing lower reimbursement rates of USD 754 (currently USD 1123) for LifeWatch's LifeStar ACT wireless cardiac monitoring service effective as from September 1, 2009. Highmark is the carrier for CMS/Medicare services in Pennsylvania.
LifeWatch is very surprised about Highmark's intention to reduce reimbursement for the wireless LifeStart ACT services and strongly believes that the planned reduction affecting all providers covered under the U.S. nationwide CPT Code 93229 is totally unjustified. In the next two months, the coalition of Independent Diagnostic Test Facilties (IDTFs) will try to convince Highmark to reverse its decision. LifeWatch believes that they have a very strong argument against this decision,
Highmark's proposed rates would only be directly applicable to roughly a third of LifeWatch's LifeStar ACT services as the majority of its wireless cardiac arrhythmia monitoring business is covered by over 460 independent commercial contracts.
Even if Highmark's proposed rates will be applicable as from September 1, 2009, LifeWatch confirms its guidance for the full year of 2009, expecting a sales increase over 50% to USD 127 million - USD 130 million, an EBITDA-Margin of over 20% and an EBIT-Margin of over 16%.
LifeWatch will announce strong results for the second quarter of 2009 on July 28, 2009 in a press release issued internationally at 0700 a.m. CEST, an analyst and media conference at the Marriott Hotel Zurich at 10:00 a.m. CEST and an international conference call / webcast at 2:00 p.m. CEST.