CardioNet (BEAT) Recovers After Reimbursement News
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CardioNet, Inc. (Nasdaq: BEAT) is higher today after falling 9% yesterday after east coast Medicare administrator, Highmark, cut the reimbursement for the company's MCOT mobile heart technology by 33%. Today the stock is up 12%.
Today's move is interesting as it surpasses yesterday's price decline. This could be because the market was widely-anticipating the news, although the company was in communication with the administrator in an effort to reverse the rate cut decision, or at least make the cut less severe.
According to analysts at Leerink Swann, CardioNet could next get a final rule from CMS on a national price for the BEAT's MCOT technology on or around Nov. 1. The firm commented, "should CMS decide to price the technology, the agency is required to use its own methodology to determine the rate independent of Highmark. In addition to Highmark, BEAT is also providing data to CMS in an attempt to build its case for a higher reimbursement rate. CMS has agreed to meet with BEAT, though a date has not yet been set."
Today's move is interesting as it surpasses yesterday's price decline. This could be because the market was widely-anticipating the news, although the company was in communication with the administrator in an effort to reverse the rate cut decision, or at least make the cut less severe.
According to analysts at Leerink Swann, CardioNet could next get a final rule from CMS on a national price for the BEAT's MCOT technology on or around Nov. 1. The firm commented, "should CMS decide to price the technology, the agency is required to use its own methodology to determine the rate independent of Highmark. In addition to Highmark, BEAT is also providing data to CMS in an attempt to build its case for a higher reimbursement rate. CMS has agreed to meet with BEAT, though a date has not yet been set."
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