CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Apr. 28, 2009--
CardioNet, Inc. (NASDAQ:BEAT) today expressed concerns over a recent
analyst report, issued on Friday, April 24, 2009, which suggested that a
reimbursement adjustment by Highmark Medicare Services, the regional
Medicare carrier, may be imminent.
The analyst purported to have information indicating that Highmark
Medicare Services plans to reduce reimbursement for CardioNet technology
and that an announcement to such effect could be made shortly. Following
the issuance of this report, CardioNet has been in frequent
communication, both written and verbal, with officials of Highmark
Medicare Services and the Centers for Medicare and Medicaid Services
(CMS) regarding the content of the analyst report. CardioNet has not
been notified of any proposed adjustment and believes that the reference
in the analyst’s report to a pending reimbursement reduction is not
based on any indication or suggestion provided by Highmark Medicare
Services or CMS.
CardioNet’s CEO, Randy Thurman, issued the following statement: “While
it is not our practice to respond publicly to analyst reports, we felt
that it was important to address some of the assertions contained in the
April 24 report. Since the release of this analyst report, CardioNet has
received information from senior officials at both CMS and Highmark
Medicare Services. These officials have stated to us that the analyst’s
suggestion of an imminent adjustment was not based on guidance from
Highmark Medicare Services or CMS and that ‘neither organization
provided the analyst with any confidential information or any
information specifically about CardioNet.’”
Mr. Thurman went on to say: “CardioNet and Highmark Medicare Services
have regularly discussed reimbursement for mobile cardiac telemetry
since we began providing that service in 2002. It has been our
experience that any significant adjustment by a Medicare contractor of
this nature would ordinarily occur after a substantial amount of
interaction and dialogue with our organization. To date, Highmark
Medicare Services has neither proposed or discussed any payment
reductions with us. Furthermore, we have a longstanding and professional
relationship with both CMS and Highmark Medicare Services and have no
reason to believe either organization would ever disclose confidential
information that could have a material effect on CardioNet or any other
company.”
About CardioNet, Inc.
CardioNet, Inc. is the leading provider of ambulatory, continuous,
real-time outpatient management solutions for monitoring relevant and
timely clinical information regarding an individual's health.
CardioNet's initial efforts are focused on the diagnosis and monitoring
of cardiac arrhythmias, or heart rhythm disorders, with a solution that
it markets as Mobile Cardiac Outpatient Telemetry™ (MCOT™). More
information can be found at http://www.cardionet.com.
Forward-Looking Statements
This press release includes certain forward-looking statements regarding
CardioNet, Inc. within the meaning of the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995 regarding, among
other things, the reimbursement rates for CardioNet, Inc. products and
technology, which may change in the future, and the actions of Highmark
Medicare Services and the Centers for Medicare and Medicaid Services
(CMS), including actions related to reimbursement rates for CardioNet,
Inc. products and technology. These statements may be identified by
words such as “expect,” “anticipate,” “estimate,” “intend,” “plan,”
“believe,” and other words and terms of similar meaning. Such
forward-looking statements are based on current expectations and involve
inherent risks and uncertainties, including important factors that could
delay, divert, or change any of them, and could cause actual outcomes
and results to differ materially from current expectations. These
factors include, among other things, the ability of Highmark Medicare
Services and CMS to change reimbursement rates for CardioNet, Inc.
products and technology and the timing of any such change, changes in
governmental regulations and legislation, and other changes to
reimbursement levels for CardioNet’s products and technology. For
further details and a discussion of these and other risks and
uncertainties, please see CardioNet’s public filings with the Securities
and Exchange Commission, including CardioNet’s latest periodic report on
Form 10-K or 10-Q. CardioNet undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new information,
future events, or otherwise.
Source: CardioNet, Inc.
CardioNet, Inc.
Marty Galvan
Investor Relations
800-908-7103
investorrelations@cardionet.com