Deutsche Bank Positive on Intuitive Surgical (ISRG) After CMS Said It Will Issue New Codes on Robotic Surgery
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Deutsche Bank comments on Intuitive Surgical (Nasdaq: ISRG), saying CMS announced that it will be issuing new ICD-9 codes to now cover robotic surgery procedures.
The firm said, "This is positive for Intuitive Surgical and something that management has been seeking for some time. It now would allow hospitals to seek higher reimbursement from insurance carriers if procedures are performed robotically. While a DRG code could take several years to be issued by CMS (if at all), it is important to note that most prostate procedures are performed in non-Medicare patients (i.e., below 65 years old). After October 2008, we would expect that hospitals will use the new ICD-9 code to seek higher reimbursement rates with private insurance payers when annual negotiations take place between the hospitals and carriers. Bottom line is that we believe that we could see higher reimbursement rates for robotic surgery down the road which would help in improving the profitability of purchasing a da Vinci system by a hospital."
The firm is reiterating their Buy rating on the company.
The firm said, "This is positive for Intuitive Surgical and something that management has been seeking for some time. It now would allow hospitals to seek higher reimbursement from insurance carriers if procedures are performed robotically. While a DRG code could take several years to be issued by CMS (if at all), it is important to note that most prostate procedures are performed in non-Medicare patients (i.e., below 65 years old). After October 2008, we would expect that hospitals will use the new ICD-9 code to seek higher reimbursement rates with private insurance payers when annual negotiations take place between the hospitals and carriers. Bottom line is that we believe that we could see higher reimbursement rates for robotic surgery down the road which would help in improving the profitability of purchasing a da Vinci system by a hospital."
The firm is reiterating their Buy rating on the company.
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