Genetic Technologies (GENE) Sees Uptick in BREVAGen Sales from Improvement in PPO Reimbursement
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Genetic Technologies Limited (Nasdaq: GENE) updates on BREVAGen sales and the "credentialing" process with the top ten U.S. Preferred Provider Organizations.
To date, the Company has executed credentialing contracts with four PPOs which represents an estimated 13 million covered lives in the U.S. Progress with these leading PPOs has been a key driver of improved BREVAGen" revenue collection.
Total revenue received from BREVAGen" sales in the period from January to April 2012 represented over 63% of all revenues received since the test was launched in June 2011. In addition to the improvement in reimbursement, the month of April saw appreciable sales uptake, with unit sales increasing to 48% higher than the year-to-date monthly average.
Credentialing contracts executed with four of the top ten Preferred Provider Organizations
Credentialing with these PPOs allows for expedited claim adjudication (as "in-network"). This provides improved cash flow while obtaining an acceptable level of reimbursement, and reduces the costs incurred through appealing denials. Once BREVAGen" volumes reach a significant level and Genetic Technologies has gathered the clinical utility data, the Company will approach insurers directly to contract.
Specific credentialing contracts have been executed with Prime Health Services, National Preferred Provider Network/PlanCare America/Ohio Preferred Provider Network LLC (NPPN/OPPN), Galaxy Health Network and Fortified Provider Network. Prime Health Services' Group Health PPO has over 600,000 physicians, ancillary services and hospitals nationwide with in excess of 6 million covered lives. NPPN/OPPN has more than 550,000 physicians, nearly 4,000 acute care facilities, and more than 90,000 ancillary care provider locations in their network. NPPN/OPPN estimate that they account for several million covered lives. Galaxy Health Network has over 400,000 directly contracted Physicians, Facilities and Hospitals and over 3.5 million covered lives. Fortified Provider Network has a presence in all 50 States and over 1.5 million covered lives.
U.S. state certification update
In April of 2011, Genetic Technologies successfully attained CLIA approval, allowing BREVAGen" to be sold into 42 U.S. States (see ASX announcement dated April 27, 2011). Following the Company's receipt of a certificate of compliance issued by the Centers for Medicare and Medicaid Services (see ASX announcement dated February 16, 2012), the Company has submitted numerous applications for "Out of State Licensure," which allows BREVAGen" to now also be sold in Pennsylvania, Rhode Island, Nevada, Tennessee and Maryland. The Company has also submitted relevant licensure applications in California and Florida and expects approval to sell BREVAGen" in these key states shortly. Submission of data to New York for approval is also in progress.
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To date, the Company has executed credentialing contracts with four PPOs which represents an estimated 13 million covered lives in the U.S. Progress with these leading PPOs has been a key driver of improved BREVAGen" revenue collection.
Total revenue received from BREVAGen" sales in the period from January to April 2012 represented over 63% of all revenues received since the test was launched in June 2011. In addition to the improvement in reimbursement, the month of April saw appreciable sales uptake, with unit sales increasing to 48% higher than the year-to-date monthly average.
Credentialing contracts executed with four of the top ten Preferred Provider Organizations
Credentialing with these PPOs allows for expedited claim adjudication (as "in-network"). This provides improved cash flow while obtaining an acceptable level of reimbursement, and reduces the costs incurred through appealing denials. Once BREVAGen" volumes reach a significant level and Genetic Technologies has gathered the clinical utility data, the Company will approach insurers directly to contract.
Specific credentialing contracts have been executed with Prime Health Services, National Preferred Provider Network/PlanCare America/Ohio Preferred Provider Network LLC (NPPN/OPPN), Galaxy Health Network and Fortified Provider Network. Prime Health Services' Group Health PPO has over 600,000 physicians, ancillary services and hospitals nationwide with in excess of 6 million covered lives. NPPN/OPPN has more than 550,000 physicians, nearly 4,000 acute care facilities, and more than 90,000 ancillary care provider locations in their network. NPPN/OPPN estimate that they account for several million covered lives. Galaxy Health Network has over 400,000 directly contracted Physicians, Facilities and Hospitals and over 3.5 million covered lives. Fortified Provider Network has a presence in all 50 States and over 1.5 million covered lives.
U.S. state certification update
In April of 2011, Genetic Technologies successfully attained CLIA approval, allowing BREVAGen" to be sold into 42 U.S. States (see ASX announcement dated April 27, 2011). Following the Company's receipt of a certificate of compliance issued by the Centers for Medicare and Medicaid Services (see ASX announcement dated February 16, 2012), the Company has submitted numerous applications for "Out of State Licensure," which allows BREVAGen" to now also be sold in Pennsylvania, Rhode Island, Nevada, Tennessee and Maryland. The Company has also submitted relevant licensure applications in California and Florida and expects approval to sell BREVAGen" in these key states shortly. Submission of data to New York for approval is also in progress.
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