Hillrom Comments on Recent Novitas Reimbursement Update

Rhea-AI Summary

On April 10, 2021, Novitas Solutions updated reimbursement rates for CPT codes related to Bardy Diagnostics' extended Holter cardiac monitoring. Hillrom, which intends to acquire BardyDx, indicated a "Company Material Adverse Effect" has occurred due to this decision, leading to unsatisfied closing conditions for the acquisition agreement. Litigation is ongoing with BardyDx, with a trial set for May 5, 2021. Hillrom is committed to long-term shareholder value and will hold a fiscal Q2 2021 earnings call on April 30, 2021.

Positive

• Hillrom's commitment to enhancing long-term shareholder value.
• The planned earnings conference call indicates transparency and ongoing communication with investors.

Negative

• The updated Novitas reimbursement rates could negatively impact BardyDx's products and services.
• Ongoing litigation with BardyDx poses uncertainty regarding the acquisition.

CHICAGO, April 11, 2021 /PRNewswire/ -- Hillrom (NYSE: HRC) previously announced its intent to acquire Bardy Diagnostics, Inc. (BardyDx). On April 10, 2021, the Medicare Administrative Contractor (MAC), Novitas Solutions, published updated reimbursement rates applicable to the Current Procedural Terminology (CPT) codes 93241, 93243, 93245 and 93247 for the extended Holter cardiac monitoring category applicable to all of BardyDx's products and services. The original Novitas rate decision was published on January 29, 2021.

Following the updated Novitas rate decision, Hillrom reconfirms its position that a "Company Material Adverse Effect" has occurred under the acquisition agreement with BardyDx, and therefore closing conditions have not been satisfied. Hillrom will not comment further due to current litigation with BardyDx, which is pending in the Delaware Court of Chancery with trial scheduled to begin May 5, 2021.

Hillrom remains committed to creating long-term shareholder value, and as previously disclosed will host its fiscal second quarter 2021 earnings conference call and webcast on Friday, April 30, 2021, beginning at 7:30 a.m. (CT) / 8:30 a.m. (ET). 

About Hillrom
Hillrom is a global medical technology leader whose 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Care™. Around the world, our innovations touch over 7 million patients each day. They help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. We make these outcomes possible through digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, advanced equipment for the surgical space and more, delivering actionable, real-time insights at the point of care. Learn more at hillrom.com.

Disclosure Regarding Forward-Looking Statements
Certain statements in this release relating to Hillrom's future plans, objectives, beliefs, expectations, representations and projections, including but not limited to the BardyDx transaction and CPT coding decisions, Hillrom's expectations regarding government and third-party payor adoption of CPT coding decisions and the timing thereof and other statements relating to reimbursement coverage, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. It is important to note that forward-looking statements involve significant risks and uncertainties and are not guarantees of future performance, and Hillrom's actual results could differ materially from those set forth in any forward-looking statements. For a more in-depth discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in Hillrom's previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Hillrom assumes no obligation to update or revise any forward-looking statements, unless required by law.

CONTACT INFORMATION
Investor Relations
Contact:	Mary Kay Ladone, Senior Vice President, Corporate Development, Strategy and Investor Relations	Contact:	Lorna Williams, Executive Director, Investor Relations and Strategy
Phone:	312-819-9387	Phone:	312-233-7799
Email:	marykay.ladone@hillrom.com	Email:	lorna.williams@hillrom.com
Media
Contact:	Howard Karesh, Vice President, Corporate Communications
Phone:	312-819-7268
Email:	howard.karesh@hillrom.com

 

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SOURCE Hillrom

FAQ

What was the recent update on Novitas reimbursement rates for Hillrom (HRC)?

On April 10, 2021, Novitas Solutions published updated reimbursement rates for CPT codes affecting Bardy Diagnostics' products.

What is the current status of Hillrom's acquisition of Bardy Diagnostics (HRC)?

Hillrom has indicated a material adverse effect due to the updated reimbursement rates, which may affect the acquisition's closing conditions.

When is the trial regarding Hillrom's litigation with Bardy Diagnostics scheduled?

The trial in Delaware Court of Chancery is scheduled to begin on May 5, 2021.

When is Hillrom's next earnings call scheduled (HRC)?

Hillrom will host its fiscal second quarter 2021 earnings call on April 30, 2021, at 7:30 a.m. CT.